Costing Consignable Items

The receipt cost associated with the depletion transaction (as defined by the item's cost profile within each cost book) determines the transaction values.

PeopleSoft Cost Management does not include consigned receipts in an item's average cost, but it does include stock transfers from a non-owned to an owned location. The system costs consigned depletions at the consigned receipt's cost, instead of the average cost of the item. When consigned items are issued to a production ID in PeopleSoft Manufacturing or a work order in PeopleSoft Maintenance Management, the receipt cost is used to value the issue transaction. For items using an average cost method, the system updates the average cost when you:

• Put away a consignable item in an owned location.

• Receive a consignable item from a non-consignment supplier.

• Transfer a consignable item from a non-owned storage location to an owned storage location.