Free-Inventory Items


I would like to know if there is a function where we can mark inventory items with free cost (items sent by Vendors as free items) where cost for of goods sold is not affected/reduced where Item Model used is Weighted Average?


Purchase Order

Vendor 001, PO005

Item A - 10 pcs for 100.00 = 1,000.00

Vendor 001, PO006

Item A - 1 pc for 0.00 = 0.00

Inventory Transaction Table

Item A

Reference Qty Financial Cost

PO001 10 990.00

PO002 5 550.00

PO003 10 900.00

SO001 -3 -292.80

SO002 -4 -390.40

PO004 100 11,050.00

PO005 10 1,000.00

PO006 1 107.86

CGAS 13,806.80

Total Goods Avail for Sale 129

WAC, if Free Item is included 107.03

WAC, if Free item is ignored 107.86 <—Should Be Weighted Average Cost"

Hi Jomer,

Yes, you can use functionality called ‘Inventory Marking’ to mark the cost of PO006, but you have to mark it to something. i.e. the Sales order which it will be sold on, or the inventory journal that removes it from inventory.

This definitely handles the cost on the Issue side of the transaction. I’ve never looked to see if it also ensures that the running average cost is unaffected. There is more info. here: