Assigning Inventory Valuation Methods to Items

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About Account Sets

Costing Methods Reference List

I/C Items Screen

The account set that an item uses determines its item valuation (or costing) method. This means that assigning or changing the item valuation method really involves two steps:

  1. Use the I/C Account Sets screen to assign the item valuation method to the account set, creating a new account set for the valuation method, if necessary.
  2. Use the I/C Items screen or the Items Wizard to assign the account set to inventory items.
  • If you are updating an existing account set, print the Item Status report, including the Profile information for the account sets you want to change so you know which items will be affected.
  • If you are assigning an existing item to an account set that uses a different costing method:
    • Print the Item Valuation report for all items that are changing.

      You need to transfer the asset amount of all items that you change from the old inventory control accounts to the new control accounts in the General Ledger after updating item records.

    • Run Day End Processing.

      Note: Inventory Control displays an error message if you try to change an item's account set while there are posted transactions for the item for which Day End Processing has not been run.

To assign the inventory valuation method to an account set:

  1. Open Inventory Control > I/C Setup > Account Sets.

  2. On the I/C Account Sets screen, either:
    • Add a new account set with the costing method that you want to use.
    • Select an existing Account Set and change the costing method .
  3. Click Save.

To assign or change the inventory costing method for an item:

  1. Open Inventory Control > I/C Items and Price Lists > Items.

  2. Enter or select the item number.
  3. In the I/C Items screen on the Items tab for Account Set Code, select the account set that uses the costing method you want to assign to the item.

    Tip: To see the available account sets, click the Finder button, and then select an account set.

  4. Click Save.
  • Print the Item Status report, including the Profile information for the account sets to check the items that you changed.
  • Transfer the asset amount from the old inventory control accounts to the new control accounts in the General Ledger after updating item record account sets. (Otherwise, you will have old balances that are never reconciled.)