To make sure that inventory costs are recorded correctly, you must set up various fields and pages before you begin to make item transactions.
The following table describes a sequence of tasks, with links to the topics that describe them.
| To | See |
|---|---|
| Set a costing method for each item to govern how its incoming cost is used to assess inventory value and the cost of goods sold. | Register New Items |
| Ensure that the cost is automatically posted to the general ledger whenever an inventory transaction is posted. | Automatic Cost Posting field on the Inventory Setup page |
| Ensure that expected costs are posted to the general ledger to see from the interim G/L accounts an estimate of the amounts due and the cost of the traded items before they are actually invoiced. | Expected Cost Posting to G/L field on the Inventory Setup page |
| Set the system up to adjust for any cost changes automatically every time you post inventory transactions. | Adjust Item Costs |
| Define if the average cost is to be calculated per item only or per item for each stockkeping unit and for each variant of the item. | Average Cost Calc. Type field on the Inventory Setup page |
| Select the period of time you would like the program to use for calculating the weighted average cost of items that use the average costing method. | Average Cost Period field on the Inventory Setup page |
| Define inventory periods to control inventory value over time by disallowing transaction posting in closed inventory periods. | Work with Inventory Periods |
| Ensure that sales returns are applied to the original outbound transaction to preserve inventory value. | Exact Cost Reversing Mandatory field on the Sales & Receivables page |
| Ensure that purchase returns are applied to the original inbound transaction to preserve inventory value. | Exact Cost Reversing Mandatory field on the ´Purchases & Payables page |
| Set up the rounding rules to apply when adjusting or suggesting item prices and when adjusting or suggesting standard costs. | Rounding Method page |
Managing Inventory Costs
Working with Business Central
Finance
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