Inventory Costing Methods

The unit cost for each inventory item appears in Order Entry screens if you have security authorization to view it.

The O/E Order Entry screen shows the estimated cost of each item in the order. When items are costed during posting or Day End Processing (depending on the costing option specified in Inventory Control), the actual cost is updated on the O/E Shipment Entry and O/E Invoice Entry screens.

Note: The O/E Order Entry screen retains the estimated cost and is not updated.

For serial costing and lot costing, if the serial numbers and lot numbers allocated in a transaction have different costs, the average cost of the serials or lots is shown in the Unit Cost field. (For more detailed information, see the Inventory Control help on Serial/Lot Costing Methods.)

For kitting items, the unit cost is displayed as the sum of all of the components’ costs.

The following table lists the various inventory costing methods and the methods used to cost items on orders, shipments and invoices.

Inventory Costing Methods
Item Costing Method Before Costing After Costing
FIFO Moving Average

FIFO
LIFO Moving Average

LIFO
Moving Average Moving Average

Cost Moving Average
Most Recent Cost Most Recent

Detail
Standard Standard Cost Moving Average
User Specified User Specified User Specified
Serial Costing Moving Average Serial Cost
Lot Costing Moving Average Lot Cost