Hi @SHAUN_KERSLAKE ,

When a new inventory part has been created in the system, and if a unit cost for that inventory part has not been defined in the inventory part record, whenever that part is received (through Receive Inventory Part or Count In), the system asks to define the unit cost of that part using a desired cost bucket.

That value is saved as the Estimated Material Cost and the Unit Cost under Cost tab in Inventory Part record.

I don’t think you may need to run a task to update it, since it is updated as the inventory value for future transactions.

But, this is mostly common for Purchased parts. When considering the manufactured parts, it’s recommended to perform cost calculation for all levels before doing any transactions.

Thanks

@ThushAsanka Thanks for your reply.

An inventory part of part type Purchased (raw) has a value of 99.00 as Estimated Material cost BEFORE counting in for the 1st time.

I enter cost bucket (Average Purchase Price) and a cost/unit value of 150.00 and save.

The Inventory part → Estimated Material Cost value remains at 99.00 and the inventory value is 0.00. 

When I approve the inventory part in “Count Result per Inventory Part”, the inventory value then changes to 150.00 but the Estimated Material Cost remains as 99.00. 

How do end users have visibility of the value at the point of approving the inventory count result if it hasn’t updated at this point? 

Regards

Shaun

Hi @SHAUN_KERSLAKE ,

So, I think the costing method for that part is actual costing. Is it Weighted Average ? If so, the value entered in the estimated material cost is not updated to the Inventory Value. Since it is actual costing, it is updated when an actual receipt is done (through a purchase order). Otherwise, system will ask for a value (like the users have experienced) when doing manual receipt like count in. However, it can also be update through the RMB option “Modify Level Cost Details” in the Inventory value line.

Since the users are getting that pop-up to enter the cost for the part when counting in, only when the inventory value is zero, it is no use for the users to see the Inventory value in the Count per Inventory Part screen.

But, if there is an estimated material cost defined in the Inventory part and Inventory value is zero, and the business wants to update the inventory value with the same as estimated material cost when counting in the part, then, a custom field (to display the estimated material cost) in the Count per Inventory Part, will work, so that the users can see that value and enter the same value.

Thanks

@ThushAsanka The inventory part is set as First In First Out for Inventory valuation method and Cost Per Part for Inventory part cost level. 

The RMB->Modify Level cost details is not enabled i’m afraid.

The ability to show the cost/unit entered at the define cost structure screen is important for the approver of the count. There have been issues where the stores person has entered a large number into the cost/unit field by mistake, and this wasn’t picked up as the approver didn’t have visibility.

Yes, it seems that the the FIFO and LIFO costing methods do not allow the Inventory value to be modified. Only the Weighted average costing method allows the Inventory value to be directly modified.

Thanks

@SHAUN_KERSLAKE @ThushAsanka since FIFO dosen’t allow the inventory value to be modified compared to weighted average, I think I found a way to do it

1. I would note the unit values to be modified from the FIFO / LIFO pile here. 

2. Then I would issue the parts and then receive back into inventory the ones with the desired cost (you may need to receive other FIFO piles before that at the same cost shown in the FIFO / LIFO pile above) . 

That way, I think you can get the desired Unit cost for a set of parts. What do you think?