The system calculates the unit cost of the item at the site or group of sites at this point by taking the sum of value received and dividing it by the sum of quantity received. For WAVG, this includes the opening balance. For FIFO, it strictly includes the quantity and value received during the cost calculation period.

When the Periodic Costing unit cost calculation results in negative values for any of the cost elements, the system creates the PCCSTCOR transaction to reset unit cost. This logic is applied to both this level costs and lower level costs, and none can be negative. The system resets the unit cost to the cost of the prior period. The system records the actual calculated unit cost before the reset. You can view the Periodic Costing cost detail of PCCSTCOR for the unit cost before the unit cost is reset in the Periodic Costing cost calculation in the Transaction PC Cost drill-down. See Transaction PC Cost Browse Collection for more information accessing the drill down.