Shipping in an Average Cost Environment
The previous shipment methods assume you are operating in a standard cost environment. If you are using average costs, you must manage shipments to avoid double booking of costs. Follow these steps:
1 Freeze the GL cost for the parent item of the configured structure. This ensures that the cost of the parent item remain zeros when its final assembly orders are closed through Work Order Accounting Close (16.21).
2 If previous Work Order Receipt (16.11) transactions exist, zero out these costs to prevent the doubling of costs for the optional items.
3 In Configured Products Control (8.24), set Receive FA in SO to Yes and Receive FA in WO to No.
4 Release the sales order to a final assembly work order (8.13).
5 Receive the final assembly work order at the time of shipment using Sales Order Shipments (7.9.15).
6 After shipping the configured product and executing Work Order Accounting Close, a residual cost may be left over for the optional items. This represents the difference between the cost of the components when they were issued to the work order and the cost of the components when the sales order line was shipped. Book this residual amount to the Cost of Goods Sold (COGS) account.