We have a client who uses FIFO. Could someone please explain how the unit cost can go to zero when there are transactions being posted with costs on. The reason this is important is because this client uses positive adjustments a lot as part of a end of month routine, and therefore no cost is being carried into the item journal table, therefore no cost is being applied.to these transactions.
Well that is the problem, it is an automated routine which generates the positive adjustments, therefore it uses the item cost, however the item card is showing zero, even though there are purchase invoices posted. Yes, the adjust cost routine is being run.
The real problem seems to be that the unit cost is staying at zero, therefore the positive adjustment goes through at zero. Have searched for info as to how the unit cost gets updated, fifo costing, but there seems to be some confusion, it is not a simple calculation of Value bought/Qty bought to give an average cost. Is there a simple guide somewhere as to how this is calculated?
Its a positive adjustment, so you are creating items out of fresh air. If you want a cost associated with a positive adjustment you need to enter it in the unit cost field before you post the journal. How can the system know what Cost to put stock in unless you tell it? [*-)]