Defining the Inventory Costing Setup

To define the way costing is carried out in the Inventory module, use Inventory Costing (ICO).

  1. Specify this information:
    Purchase Earliest Latest Cost

    Earliest purchasing stage that can be used to update the latest actual cost of an item.

    Purch Earliest Wghtd Avg Cost
    Earliest purchasing stage that can be used to calculate and update the weighted average cost of an item.
    Note: This stage should be the earliest stage in which actual receipts take place. Setting to a later stage would not be a logical setup.
    Movement Earliest Latest Cost

    Earliest movement stage that can be used to update the latest actual cost of an item.

    Mvmt Earliest Wtd Avg Cost

    Earliest movement stage that can be used to calculate and update the weighted average cost of an item.

    Earliest Stage for Service LAT

    Earliest purchasing stage that can be used to update the latest actual cost of a service item.

    Earliest Stage for Service WAV

    Earliest purchasing stage that can be be used to calculate and update the weighted average cost of a service item.

    Earliest movement stage that can be used to update the latest actual cost of a service item. Mvmt Earliest Svc Latest Cost

    Mvmt Earliest Svc Wtd Avg Cost

    Earliest movement stage that can be be used to calculate and update the weighted average cost of a service item.

    Multi-Currency

    Indicates how costs will be kept in terms of the currencies set up in a multi-currency Business Unit. These options are available:

    • Base Currency Only
    • Base and Reporting Currencies Only
    • Maintain Costs in all Currencies (Base, Reporting and Transaction).
    Cleardown Delay

    Information on transactions that have failed during the costing processing run are kept on the costing work tables. This field shows the number of days this information is kept for, before being deleted.

    Freeze Standard Costs

    If this box is checked, the updating of standard costs is not allowed.

    Costing Required

    Set this option if costing is required. If this is not set, Item Latest and Weighted Average costs are not maintained, and costs are not recorded against inventory receipts and issues.

    Defined Avg Time Frame Duratn
    Defined Avg Time Frame Unit
    Defined Average Future Only
    Negative WAV Ldg Interface Dfn

    This Ledger interface is used in the circumstance where the Weighted Average Cost goes negative because of a negative change of cost.

  2. Mvmt Earliest Svc Latest CostSave your changes.