Understanding the Item Cost Level Conversion Program

After you have entered cost information, you might need to change the cost level of an item. To change the cost level after you have entered cost information for the item, you must use the Item Cost Level Conversion program (R41815).

This program deletes all existing cost records for the item in the Item Cost table (F4105) and creates new cost records that correspond to the level. For the item to create the new cost records, the system uses the cost method that you identified for sales and inventory on the Cost Revisions form.

The program does not change the cost valuation of items and does not create journal entries. For example, if you change the cost level of an item from branch/plant and location to branch/plant, all existing cost records for the branch/plant and location must contain the same sales and inventory cost method and cost.

You can run this program in either proof mode or final mode. When you run the program in proof mode, the system generates the Item Cost Level Conversion report, which displays errors that need correction. You should always run the program in proof mode first and correct any discrepancies.

When you run the program in final mode, the system updates:

• The Inventory Cost Level field in the Item Master table (F4101).

• The F4105 table.