Returning Components to Inventory

The Transaction Costing process (within the Cost Accounting Creation process) also records the cost for components or kits returned to inventory. When components are returned to inventory stock, the transaction groups, 220 (Component Kit) and 230 (Component Consumption), are inserted in the TRANSACTION_INV table with a negative quantity. The Transaction Costing process must find the correct cost and process the receipt to the CM_RECEIPTS record.

In a standard costed environment, the returned stock is received and put away at the standard cost.

For items using a deplete cost method of actual or periodic weighted average, the original receipt cost must be located by back tracking from the depletion record (for the production ID that consumed the component) to the original receipt. The process uses the last component consumed for the unit, item, production ID, and operation sequence. If the item is lot or serial-controlled, then the specific lot or serial must be found on the depletion record. FIFO and LIFO items also use the last consumed on the depletion record. For items using a deplete cost method of perpetual weighted average, the return transactions is costed using the weighted average of the items issued. For more information, see the "Returning Perpetual Weighted Average Items to Inventory" section of this topic.