Problem with Costing

jacky10

hi

The Costing method we have opted is 'Average'... yet whenever we create a Sales Order the 'Unit Cost' field in the Sales Line is updated with the 'Unit Cost' value from the Item Card (which is the way normally 'Standard Costin' works i guess) .. isnt the Average Cost should be taken?

Okay if the system works that way... for some items in the Item Card the unit cost never changes... notably these in these items, the 'Cost Adjusted' option was unticked.....

what could be the reason? its affecting our profitability in the sales lines hugely....

appreciate any help....

muksha

it depends upon the scenerio. Are you using manufacturing or doing trading?

jacky10

Trading

ssingla

The inventory batch job will update the cost on the item card. The same will appear on the invoice at the time of prepration of invoice. Once the unit is computed on the sales line it will not be updated by the batch job but unless there is huge fluctuation in the prices it will give fairly reliable results.