Serialized Inventory Items and Cost

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Posted on by Jim Lines

Hi,
I didn't have much luck searching my question, so I am hoping someone can give me a quick answer.

We're going to be using FIFO for inventory valuation. Additionall, many items will be serialized and will be purchased at different costs. When a serialized item is received into inventory, does the cost of the stay with that item? Or does it just dump it into inventory and continue using the cost layer within the system?

Thanks in advance.

Jim

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mpolino on at

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The cost of a serialized item stays with that cost throughout it's cycle. If you buy a serialized item at $10 but the next FIFO cost is $8, a GP sales transaction will show the cost as $8 all the way up until posting. At posting, GP gets and applies the actual cost from a serialized item. The posting report shows the actual posted cost as $10.

Mark

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Jim Lines 4 on at

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Thanks Mark. I appreciate your help.

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Community Member on at

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Hi Mark, I hope you can help me. I have seen a few of your responses and I am impress. We are using Current Cost / Average Perpetual and continue to see difference between our current cost of a Finished Good/manufactured item and the BOM Cost. What could be the causes and what do I need to adjust? Thank you.

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Community Member on at

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One thing I have seen with Average Cost it is a company wide Average, not a location specific, for if you have Inv at various locations or and landing costs to other Warehouses, these will all be taken into account calculating the Average. Have had several clinets look at this and then decide to go another method after seeing this.

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Community Member on at

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Jim, same methodology applies for Lot Numbers within GP as well.

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Jim Lines 4 on at

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Thanks Steve. I got confused at the response as this post was from 4 years ago. :)

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MG-16101311-0 26,225 on at

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FIFO, LIFO, Average, none of these cost methods maintain a cost per site. In order to have a cost per site, you need to look at Inventory Cost Per Site by Winthrop Development Consultants. This product has not been publicly released yet and is in testing, but I believe my friend David Musgrave will have it available by January of 2017

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