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Overview

The re-cost inventory with freight screen was created as a means of adding shipping costs to the average cost of inventory. The average cost of inventory is the purchase cost that an item is received into inventory with, this does not include any freight that may be charged for shipping the items to you. This screen will allow you to recalculate the average cost of an item to include freight and adjust your inventory carrying cost (average costs of all of the like items) accordingly.

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Detail

    So if you had 9 items in inventory at an average cost of $10 apiece and you received 1 item at $10 apiece, you would have 10 items for $100 cost or an average cost of $10 apiece. However if the last shipment did not have free freight and there was a $10 shipping fee, you would take the total inventory carrying cost ($100) and add the shipping cost of one item you just received ($10) for a total inventory carrying cost of $110 and divide that by 10 items to get a new average cost of ($11.00). In this screen you can pull up the item and the warehouse it is stored at and the current cost will show in the grey boxes. Enter the new average cost of $11.00 and press the process transactions icon. Behind the scenes this screen will issue all of those items out of inventory at the 10.00 per cost and then receive 10 items back in at the new 11.00 cost. This will show on your inventory transaction tab so you will have an inventory audit trail and any variance will post to your AP variance account to cover the accounting audit trail.

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