Set the Average Costing Type to "Item&Location&Variant" in the inventory Setup, create Stockkeeping Units for all variants and activate "Exact Cost Reversing Mandantory" in the Sales and Purchases Setup.
Thanks for ur valuable reply. wht is the use of creating Stock Keeping Units? Is it necessary for costing?
If you don't set up Stockkeeping Units, there is no specific average unit cost for each variant available. This is necessary for any inventory increase where you don't get this cost from an external source (=vendor) like a positive adjustment in phys. inventory or a transfer/item reclass. Without SKUs, an overall average unit cost for all variants is used to value the increase.
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Did you try it?
Thanks for ur valuable reply. wht is the use of creating Stock Keeping Units? Is it necessary for costing?
Thanks & Regards,
Kishore.