Select Current Cost Method
QMI uses a standard cost method for the GL cost set, and it tracks its actual costs in the current cost set. The method of updating the current cost set is selected in Inventory Accounting Control (36.9.2). QMI uses the method Last, so that the last or most recent cost of an item becomes the current cost.
Additional Notes
Current Cost from AP
Optionally, you can also update the current cost each time an AP voucher transaction is completed for the item. This uses the supplier invoice amount to update the current cost.
Create GL Transactions
Create GL Transactions is selected unless you are using the periodic method of inventory accounting. In periodic inventory accounting, the period ending inventory is based on the cost of beginning inventory plus purchases minus sales. No GL entries need to be created if inventory is manually created.
Note: Periodic inventory accounting is essentially an obsolete concept. Only the smallest business could manage with this technique. This is a financial inventory method giving only the value of the inventory, and only at period end. If you wanted to know how much of an item you had on hand, you would need to do a physical inventory count.
