STD Cost Inventory revaluation

Hello all…

I have question regarding STD cost Model. I initially purchased and Item using the PO and I have 1 transaction in the invent Trans.

When I change the STD cost of the item and activate the price, I see that this original transaction gets split to create 2 inventtrans records. Does anyone know why this happens.

Let me know if you have any insight to this as to why this happens.?



So you have no standard cost, then you receive the purchase order in, then activate a price in the costing version (before the invoice) and it splits it into 2 is that correct?

If so what is the cost of the receipt and what is the standard cost? What are the two split values?

I wish I could give more information on this. But let me try.

When the original transaction get split up to two trans, then the first Transaction, the adjustment does not change but the second trans record shows the new adjustment to the new Std cost.

when the trans gets split into two trans, it does not necessarily split at an even qty. In my example I did a PO for 10pcs. The inventtrans was originally 1 line of 10 pcs.

After activating to a new STD cost, the original trans is now split to 4 and 6. The 4 pcs have the original Adjustment. The 6 pcs trans is now adjusted to the new STD cost.

I just dont know why it split the inventtrans and does the adjustment to different values.

Hello Adam:

Yes, I do have the standard cost. and the trans record looks fine. The physical cost is teh std cost and the financial cost is the purchase cost and teh adjustment is the diff betwenn the STD cost and Purch price.

Next I increase the Std cost of teh item and activate it. That is when the trans record gets split