Understanding Standard Cost Revaluation Transactions

Standard cost revaluation transactions are the transactions that occur when you change standard costs and update the production cost record with the new version of costs. At that time, the system:

• Calculates the change in inventory value by determining the change in cost and multiplying that difference by the quantity on hand in inspection, storage areas, and WIP locations.

• Determines the change in WIP inventory by calculating the change in cost of components remaining in process, as well as the associated labor, machine, subcontracting, and overhead costs that are earned to that point.

The WIP revaluation information that is displayed here is associated with the revaluation of the components issued to the production ID or schedule as well as the revaluation of the assembly item itself. Detail information is derived from the Posted Item Cost Variance record (CE_ITEMCVAR_PST). The transaction groups are:

Transaction Group	Description	Transaction Process	Menu Path
200	Inventory Revalue.	Once production costs are updated, this transaction accounts for the change in inventory value in storage areas or WIP locations.	Cost Accounting, Item Costs, Update Standard Costs, Cost Update/Revalue, Update Production
201	Inventory Reval - Inspection.	Once production costs are updated, this transaction accounts for the change in inventory value in inspection locations.	Cost Accounting, Item Costs, Update Standard Costs, Cost Update/Revalue, Update Production
210	WIP Revalue (Comps, Assy).	Revaluation of WIP. This transaction accounts for the change in component and assembly costs that are still in process.	Cost Accounting, Item Costs, Update Standard Costs, Cost Update/Revalue, Update Production