Inventory Cost
You must specify the cost method that the system uses to determine the cost of an item for:
Sales and costs of goods sold.
Purchase orders.
For example, you can use the weighted average cost method to determine the cost of goods sold for an item, and the last-in cost method to determine the item's unit cost for purchase orders.
You can define cost methods with UDCs, although the system reserves cost methods 01 through 19. The system provides eight predefined cost methods:
Last In.
Weighted Average.
Memo.
Current.
Future.
Lot.
Standard.
Purchasing - Base Cost No Additions.
You establish costs for an item by entering an amount for each cost method. When you review costs for the item, the system displays only those methods for which you entered an amount.
If you do not enter an item cost for the cost methods that you assign to sales, inventory, or purchasing, the system displays a warning message. If you ignore the warning message, the system assigns a zero cost for the cost method.