Costing for Newly Added Products
Programs within the Periodic Costing menu let you create a prior period for new items that you added after you initialize Periodic Costing. Regardless of whether you use the FIFO and WAVG methods, you can establish an initial cost set prior to the period for which you added the item using PC Unit Cost Adjustment.
Example: The current Periodic Costing period is June, and you create item01. You use PC Unit Cost Adjustment to adjust the cost of item01 for May. The system creates a cost set of item01 for May with an unconsumed quantity equal to 0 (zero) and the unit cost set to user adjusted. Additionally, when there is no previous period cost, you can use PC Unit Cost Adjustment, then modify the unit cost for the last bucket in the latest period. Or, when the previous period only has one bucket with a quantity of 0 and a unit cost set to any, you can use PC Unit Cost Adjustment to modify the one bucket.
The system initializes the unit cost; then, applies the unit cost to the transaction cost when the following exist:
• You use WAVG and add new items.
• There is no order receipt.
• There is cycle count or other transactions that require costing.
When you add the new items to the system, the first period does not have order receipts so that the system cannot calculate a unit cost; however, when you have a first-period transaction that requires costing, such as a cycle count or issue transaction, the system now sets the unit cost to that of the prior period, then it costs the transactions with this unit cost. You establish the prior period unit cost in PC Unit Cost Adjustment.