Assigning a Cost Method and Cost to an Item
Access the Cost Revisions form.
You can enter cost methods for items when you enter either item master information or item branch information. For example, you can use the weighted average cost method to determine the cost of goods that is sold for an item, and the last-in cost method to determine the item's unit cost for purchase orders.
The system provides predefined cost methods. You can add your own cost methods to UDC table (40/CM), although the cost methods 01 through 19 are reserved.
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, the system assigns a zero cost for the cost method.
- Sales/Inventory
Enter a code from UDC table (40/CM) that indicates the cost method that the system uses to calculate the cost of goods that is sold for the item. Cost methods 01–19 are reserved.
If you maintain costs at the item level, the system retrieves the default value for this field from the data dictionary. If you maintain costs at the item and branch/plant level, the system retrieves the default value from Branch/Plant Constants (P41001) program.
- Purchasing
Enter a code from UDC table (40/CM) that indicates the cost method that the system uses to determine the cost of the item for purchase orders. Cost methods 01–19 are reserved.
If you maintain costs at the item level, the system retrieves the default value for this field from the data dictionary. If you maintain costs at the item and branch/plant level, the system retrieves the default value from Branch/Plant Constants (P41001) program.
- Cost Method
Enter a code from UDC table (40/CM) that specifies the basis for calculating item costs. Cost methods 01–19 are reserved.
- Unit Cost
Enter 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.