QAD 2017 Enterprise Edition
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Costing
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Cost Sets and Methods
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Using Costing Methods with Cost Sets
Using Costing Methods with Cost Sets
In standard costing, only the standard cost method is used for the GL cost set. If you are using the Cost Management module, you can use either the average or standard cost method for GL costs.
The current cost set tracks the running average or the last cost to determine next year’s standard cost or to provide a record of recent actual costs.
Costing methods that can be used with the current cost set are:
• Average. Whenever an item is received, the system calculates the new average cost and stores it in the cost set.
• Standard: Costs are not updated automatically; they must be maintained manually. Updates are typically performed no more than a few times per year.
• Last. For each receipt, the system sets the current cost to the last cost of that item. In the case of purchased items, this is the purchase or invoice price.
• None. The system does not maintain the current costs; they must be maintained manually.