Auto post costing

Dear All,
I would like to share the questions that still have no 100% correct answer because I am still doubt.
They are as follows:

  1. Automatic cost posting option : automatically adjust cost - item entries and post inventory cost to G/L
  2. Adjust cost - item entries : manually adjust cost - item entries batch job (can be used per batch)
  3. Post inventory cost to G/L : manually posting after running adjust cost

So, I concluded:
a. If I choose automatic cost posting (no.1) then I don’t do the no. 2 and 3 anymore
b. if I skip no. 1, then periodically according to accounting period, I must do no. 2 and 3.

I am I true or not I am still doubt. I expected your answers so much. tks beforehand


No, I do not believe that is correct, with automatic cost posting, the cost is posted at the time of the invoice posting, but it can still be adjusted depending on final cost. ie you could sell something before it was in stock, with automatic cost posting it will post the cost, (standard cost, average cost, ect) depending on what you have the item costing set up as, but you will still need to run the adjust item cost routine and the post cost to g/l batch file to make any final adjustments.

for instance if you use standard cost with automatic cost posting set to yes, when you post an sales invoice the standard cost will post to the cost of good sold account and inventory g/l account will be reduced. When you run the adjust item cost routine and then post the cost to g/l batch routine the actual cost the item versus the standard cost of the item will accounted for.

It you do not have automatic cost posting set to yes, when you post the sales invoice, the cost will not be posted and the inventory g/l account will not be reduced, until you run the other routines

So, with automatic cost posting, you get an immediate recording of cost of sales at the time of posting, versus having to wait until your run the adjust item cost routine.


Are you using expected costs? Even with 1 selected you still have to do 2, and with versions earlier than 3.10 (?) I think you also still had to do 3. Without expected cost the cost is only posted when it is known, so theoretically 2 and 3 are not required, unless you do a revaluation journal I believe. Not sure of all of the angles, run some through and you will see.

you need to run Adjust Cost - Item Entries to be able to assign the correct COGS to outbound entries.

e.g. if you use FIFO as costing method, the outbound entries are initially valued with average cost (that is moved from Unit Cost in Item Card to Unit Cost (LCY) in Sales Line) then it is adjusted by the batch job that also post to G/L (at least in 4.0 version)

Hi Steven

I am using expected cost and automatic cost posting checked to yes. I also set always in the automatic cost adjustment field. tks for your answer then. but I wonder if the 3 fields all at once, then no. 2 and 3 still doing or not.



Tks for your answer. as I’ve written a reply to Steven, I have actually set to always in the automatic cost adjustment. then, should I run adjust-cost item entries anymore…?


My understanding of that 4.0 SP1 funcitonality is that if you have set it to “always” then the cost is adjusted at the inbound processing of the invoice when matched to get receipts, the expected costs are reversed and there is no need to run the adust cost item process.