Unit Cost Field, Item Table

Contains the cost per unit of the item.

Depending on what you selected in the Costing Method field, the program fills in the Unit Cost field as follows:

• If the costing method is Standard, then he program grays this field and makes it non-editable.

• If the costing method is FIFO, LIFO, Specific, or Average, then the program calculates the unit cost as follows:

  Unit cost = inventory value of items on hand (expected cost + invoiced cost) / quantity on hand

If the costing method is FIFO, LIFO, Specific, or Average, then the program updates the field in the following cases:

• When the item is cost-adjusted, automatically or by the batch job, or

• During the posting of purchase invoices, output, or positive adjustment if one of the following conditions is true:

  • The net invoiced quantity of the item changes from negative or zero to positive.

  • The unit cost on the item card is zero.

If one of these conditions is true, the program will update the Unit Cost field with the value in the Last Direct Cost field on the item card.

If the item uses the costing method Average, you can choose the field to open the Average Cost Calc. Overview window, which shows all the source value entries that the program uses for calculating the average cost, grouped and summarized by average cost period.

Parent Tables

See Also

Reference

Average Cost Calc. Overview
Last Direct Cost
Costing Method
Automatic Cost Adjustment
Item Card

Other Resources

Adjust Cost - Item Entries
How to: Set Up Items
Small Business Role Center