Per Costing Method
Cost is calculated based on the costing method assigned to the item. For example: LIFO, FIFO, standard, average, and so on.
The costs are sourced from the items in the sequence outlined in the table. For example, refer to row 1 in the below table. An assembly item will source by item location average cost if the value is greater than 0. Else, it moves to the next source (item location last purchase price) and checks if the value is greater than 0. It then goes to the next source (Item purchase price) and checks if the value is greater than 0. If none of the source types provide a value greater than 0, then the price of the assembly item will be 0.
If the Top Level Only field is not checked, the costs for the assembly item are sourced and aggregated from the component items in the exploded bill of materials.
Item Type |
Top Level |
Costing Method |
Cost Source |
---|---|---|---|
Assembly item or inventory item |
Yes |
Group Average Average |
|
Standard |
|
||
Lot Numbered Specific Actual FIFO LIFO, and so on. |
|
||
Inventory item |
No |
Group Average Average |
|
Standard |
|
||
Lot Numbered Specific Actual FIFO LIFO, and so on. |
|