Cost price on Transfer order

Hi,

I was wondering what the initial cost price on the tranfer order (receipt) depends on? The average item on-hand cost or the inventory cost price?

Thanks,

Firstly it depends upon your costing method.

How about FIFO?

Then it depends upon your dimension group setup and how you are tracking financial cost. Ultimately it will be the physical cost held at the level you hold it, so site as a minimum.

I would suggest you setup a senario and test it. It is not the inventory cost price in FIFO it will be the average at teh level tracked, and then updated depending upon subsequent updates impacting on the source transactions.