Determines which sources have changed their cost and to which destination these costs should be forwarded during adjustment.

Detection of cost changes and the resulting cost forwarding for produced and assembled items occur in the Inventory Adjmt. Entry (Order) table as follows:

• Cost adjustment is detected by marking the order whenever a resource or component is posted as used for the order.
  
• Cost forwarding occurs by applying the costs from the component or resource to the output entries that are associated with the order.
  

  Note
  For assembly orders, costs are forwarding by summing all costs from consumed components and resources and then spreading it equally to all associated output entries.

Detection of cost changes and the resulting cost forwarding for other items than produced and assembled items occur in the following tables:

• Item Application Entry table for items that use FIFO, LIFO, Standard, and Specific costing methods and that also use fixed application. The method involves the following:
  
  • Cost adjustment is detected by marking the source item ledger entries as Applied Entry to Adjust whenever an item ledger or value entry is posted.
    
  • Cost forwarding occurs according to the cost chains that are recorded in the Item Application Entry table.
    
• Avg. Cost Adjmt. Entry Point table for items that use Average costing method. The method involves the following:
  
  • Cost adjustment is detected by marking a record in the Avg. Cost Adjmt. Entry Point table whenever a value entry is posted.
    
  • Cost forwarding occurs by applying the costs to value entries with a later valuation date.
    

See Also

---

© 2015 Microsoft. All rights reserved.

Build Date:

2016-02-11