Understanding Item Cost Updates

You can use cost maintenance procedures to update costs for individual items or for multiple items in the branch/plants, locations, and lots that you select. You select the cost method to use for updating costs. For example, you can implement a percentage increase in the standard cost for a group of items. If you use the average cost method to determine inventory costs, you can update the average cost for all items. You can increase or decrease costs by a percentage or monetary amount, or you can specify a new amount. You specify the cost method for which you want to update costs. For example, you can update an item's last-in costs, average costs, and so on. Cost changes are effective immediately. You can also update average costs or future costs for all items that you select.

The system stores item costs in the Item Cost File (F4105). After you update item costs, the system updates the F4105 table. After you update costs for an item's sales/inventory cost method, the system creates general ledger (GL) and item ledger records.