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I was doing a margin analysis on one of our larger orders and noticed that one of the line items was showing a unit cost of $0.00. This is a serialized item. This item is actually attached to a purchase order that has been received and it is also showing in inventory. After looking at Inquiry->Inventory->Item Receipts, I see that our cost on the item is $710.00, which is exactly what the attached purchase order link is for.
Any ideas why our unit cost would be showing $0.00? I have tried fulfilling the line item with the serial number and everything. I have other serialized items that have been fulfilled and their unit cost's are correct.
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Ron,
Are you looking at unposted orders? If so, if the order was created before the first time the item was received, it may have originally been created with a cost of $0 because GP did not have any cost history for the item yet. When you link a PO to a Sales Order, the cost does not get updated. You will only see the correct cost once the order is transferred to an invoice and posted.
Ron, I would suggest to check the unit cost in the Item Maintenance for that item. Depending upon the valuation method, the unit cost in the unposted Sales documents may show the unit cost from the Current Cost in the Item Maintenance. The actual cost is calculated and posted when the Sales Invoice is posted.
If you have a test company, you could try creating a similar scenario in the test company, with $0.00 current cost in the Item Maintenance. Transfer the Sales Order to Invoice and post the Invoice in the test company. Then check the unit cost in the posted Invoice. See how that goes..
Best Regards,
SB
Costing is complex but I will try to fit it in a few lines. The cost on an SOP document is usually taken from the Purchase Receipts table in inventory based on whether you are on a FIFO or LIFO scheme and not off the Item Master card. With serialized items, the receipt record for the serial number is used as the source for the cost posting the actual cost incurred to the SOP document. If the serial number was received at 0.00, that is the cost that will be used.
Now, you issued a PO for the item and received against that PO. Don't look at the PO but look at the receipt record for the cost. It SHOULD be the same but sometimes is not. If you received 10 items at a cost that is not evenly divisible by 10, one of the items will be received at a different cost.
If you had an SOP return transaction for the part with this serial number, the user may not have assigned a cost to the item, causing the receipt record to be recorded with $0.00.
Hope this helps. SOP usually tracks what is entered pretty well. We have all of the cost flows documented in our books. Check them out.
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