My company use std cost prices & FIFO system for inventory. Whenever I change std cost prices for one inventory item (with available stock measured at old std cost amount), but do not run the revaluation to re-measure all available stock to new std cost amount, the system always automatically run the recalculation (Automatic posted journal with description as “costing item…”). And at the same time when stock is financially consumed, some stocks deducted at old cost prices, some stocks deducted at new cost prices and some stocks even deducted at a “very strange cost prices”. I do not have a clear understanding on how the system work on this issue, so it’s very hard to track transactions and stock value. Would you pls kindly share me your experience on this?
Besides, in the inventory transaction table, I see below three costing kinds for any transaction:
- Cost value
- Physical cost amount
- Financial cost amount
What are they? How are they measured? And why adjustment amount is difference b/w cost value vs. financial cost amount but not b/w physical cost amount vs. financial cost amount?
Thanks for your kind support in advance!