We have instances where stock PO lines are being 'product receipted' by the warehousing team many days after the 'registration' of the stock has been done using the hand held devices by the shop floor team. Once the stock is registered it is available as on hand stock and therefore can be consumed into production orders and sales orders. As a result of the business delaying the product receipt of the registered PO stock lines we have had scenarios where the Cost of Sale recognized against the sales order invoice or production order is inaccurate or even at nil price because its a new product with no prior costing history. Although the business have been told to start completing the product receipt in a more timely manner, the ask is can we recognize and firm up the physical cost of the stock product at the registration stage instead of waiting until the product receipt is done to ensure the accuracy of the cost.
We are using the moving average cost method.