Costs (if you are using Standard cost model) are maintained in the item price form: Product information management > Released products > Manage costs tab > Item price button.
There are three types of costs:
- Cost: is be used for inventory management
- Purchase price: is be used for default value on purchase orders
- Sales price: is be used for default value on sales orders
Once you have activated a new cost, revaluation of on-hand inventory will be done.
Let’s look at the GL transactions for revaluation on-hand inventory along different types of underlying sources of inventory.
- Inventory adjustment
- Purchase order + packing slip + invoice
- Sales order + packing slip + invoice
Inventory adjustment transaction
Let’s check the case when we have several transactions.
Purchase order invoice transaction.
Let’s say that we have turned on Negative inventory and On-hand was caused by sales order.
Sales order invoice transaction