Any material receipt transaction—that is, a purchase order receipt, PO shipper receipt, work order/cumulative order receipt—might cause the material cost to change. Also, for distribution order receipts, any transfer by site, whether DRP or not, causes a material cost change, but should have the same cost as the issue value on the issue site.

Unplanned receipts, cycle counts, physical counts, and receipt transfers between locations are all transactions that do not cause cost change; the current unit cost is applied to the goods received and material costs related to Logistics Accounting.

Material cost calculations formula - Average:

After manufacturing, finished products and components are received into stock.