Include physical value checkbox

Is this correct:

I’ve got a new item without any transactions, hence cost value equals to 0.

In an item model group I have selected NOT to include physical value. I’ll do a purchase order and receipt for 10 pcs with a price of 100. Cost value and inventory value for the item still equals to zero.

I’ll do an invoice and only after that it gets updated 1000. Correct?

It is used in the calculation of the average cost, so if ticked it updates that cost at receipt.

So it is difficult to answer your question as posed without knowing the costing method and elements like “post physical inventory”.