Setting up Movement Types (MTS) - Costing

  1. Specify this information:
    Manual Costs
    This only applies where the movement type is a transfer. The issue is always costed as normal, taking the values from either the item or the receipt to which the issue is being allocated.
    Standard cost is always taken from the item, so the receipt is costed in this way.
    If selected, the receipt is treated as a new and separate transaction, taking costs from the indicated value label on the movement order. This allows a transfer to revalue an item. Only check this box if items can change in value during a transfer.
    If not selected, the receipt is costed as defined in the Movement Cost Transfer field.
    Movement Cost Transfer
    This field controls which costs are used to value the receipt part of a transfer. If the movement is not a transfer type, it is ignored. If the Manual Costs field is checked, it is also ignored. Standard costing is unaffected by this flag.
    If the Movement Cost Transfer field is checked, weighted average costs must be in use. Both the latest actual costs and the weighted average costs on the receipt take the weighted average cost of the issue, which is taken from the item. This is also used to update the latest cost for the item and the average cost for the item if analyzed costing is in use. This ensures that the transfer has no effect on the overall value of inventory using weighted average costing.
    If the Movement Cost Transfer field is not checked, latest costing must be in use. The latest cost on the transfer issue, which is taken from the original receipt, is used as the latest cost on the transfer receipt. The weighted average cost is recalculated from this and used to update both the receipt and the item. This ensures that the transfer has no effect on the overall value of the inventory using latest costing.
    Because the items are valued differently at their point of final issue, in both cases, inventory values reach zero when all items are issued.
    Latest Costs Earliest Stage
    The earliest movements stage to be used to calculate the latest actual costs for inventory items.
    Weighted Average Costs Earliest Stage
    The earliest movements stage to be used to calculate the weighted average costs for inventory items.
  2. Save your changes.