Specific Costing Setup
This topic describes the setup for specific costing.
Use these steps to implement the specific inventory cost method:
- Select the Post to Journal field on the Inventory Parameters form to have all transactions which affect inventory post to the G/L inventory distribution journals. Clear the field to suppress posting to the G/L those transactions which may affect inventory.
- Set the Cost Method field on the Items form to Specific for all items. (Ideally, you would set this field at the time the items are added to the Items file).
- Set the Cost Type field on the Items form to Actual. The cost type default value comes from the Cost Type field on the Inventory Parameters form when adding new items.
- Specify the beginning inventory, along with the initial specific unit cost, for each item's location/lot.
Note: When processing an ADD transaction on the Item Stockroom Locations
form to enter stock locations and accompanying beginning inventory balances, enter the cost
to be associated with the item's quantity entered. This cost is also posted to the
Unit Cost field in the Items file.
If you have selected Actual in the Inventory Parameter's Cost Type field, and selected the Post to Journal check box in General Parameters to indicate that the manufacturing modules are to post inventory transactions to G/L Inventory Distribution Journals, you must also set up the G/L account numbers that are used for this interface. These account numbers must be entered into the associated codes and parameters for costing purposes:
Product Codes - WIP Tab
WIP Material
WIP Labor
WIP Fixed Overhead
WIP Variable Overhead
WIP Outside Services
Product Codes - Misc Tab
Inventory Adjustment
Product Codes - Applied Overhead
Only one account is needed for the each following:
Matl Fovhd Applied
Matl Vvhd Applied
Note: The Fixed Material
Overhead Applied and the Variable Material Overhead Applied accounts are
required only when overhead is based on Job Material Issues.
Purchasing Parameters
Vouchers Payable