I have 2 locations. 1 item has different standard cost at 2 locations. So I create SKU. But when I transfer this item from 1 location to the other, there is no any G/L entry created. My question is what the purpose of Standard Cost at SKU. Following is my test: Item 1 SKU 1 at location Blue standard cost is 0 Item 1 SKU 2 at location Green standard cost is $100. I purchase Item 1 SKU 1 at location Blue, its cost is 0. After I transfer it to location Green, its cost is still 0.
Standard cost on SKU can still be useful if you do purchases on the second location instead of transferring items. BTW the issue is a “by design” issue according to the following fragment of the technical whitepaper (4.0) Transfer Application When an item is transferred from one location to another, the program makes a transfer application. Valuing a transfer entry depends on the costing method. For items using the average costing method, valuation is made using the average cost on the valuation date of the transfer. For items using other costing methods, valuation is made by tracing back to the cost of the original inventory increase. Example o The first example shows a transfer from location BLUE to location RED for an item using the average costing method. o As the average cost on the valuation date of the transfer is LCY 15, the transfer is also valued accordingly. Value Entries Posting Date Item Ledger Entry Type Location Quantity Cost Amount (Actual) Entry No. 01-01-03 Purchase BLUE 1 10 1 01-01-03 Purchase BLUE 1 20 2 02-01-03 Transfer BLUE -1 -15 3 02-01-03 Transfer RED 1 15 4 o The second example shows a transfer from location BLUE to location RED for an item using the standard costing method. o The item was originally purchased at location BLUE with the standard cost set to LCY 10, and was then transferred to location RED with the standard cost set to LCY 12. o Since the value of the original inventory increase is LCY 10, the transfer is valued at that – and not LCY 12. Value Entries Posting Date Item Ledger Entry Type Location Quantity Cost Amount (Actual) Entry No. 01-01-03 Purchase BLUE 1 10 1 02-01-03 Transfer BLUE -1 10 2 02-01-03 Transfer RED 1 10 3
I may need to check it, but I also thought that GL adjustments would be posted so long as you have automatic posting switched on, maybe that’s the issue.