Cost Updates
The system uses cost sets and costing methods to maintain item costs. Cost sets are collections of cost data and are applied per site. Cost methods determine how the cost data is calculated.
Matching variances affect the quantities and prices of items per site. The system automatically updates item costs in the following ways:
• When the GL cost set of a receiving site uses the average costing method, the matching process can update average costs for the items concerned at the receiving site.
• The system also updates current costs for the receiving site, as long as the current cost set for the site uses average cost or last cost as the costing method and the Current Cost from AP field is selected in Inventory Accounting Control (36.9.2). The Current Cost from AP field determines if the current material cost of the item is updated by rate variances calculated as a result of receiver matching.
When average costing is enabled, you can choose to update item costs based on the results of the matching or decide not to update them. A price variance may be due to overcharging—in this case you do not want to update the original item cost. It also can result from a genuine change in cost—in this case the item cost should be updated. To enable cost updates, do not select the Use GL Variance Account field on the matching grid. When selected, a GL Variance account and not an Inventory account is updated by the matching postings, and inventory costings are not affected by the matching.
Item costs are only updated when the matching is completed and saved with a Finished status.
These cost sets and methods are described in detail in the Cost Management section of
QAD Costing User Guide.