Estimated Unit Cost in Inventory Adjustment for New Location (Multi-Location Inventory)
Published on
August 6, 2023 at 12:18:26 AM PDT August 6, 2023 at 12:18:26 AM PDTth, August 6, 2023 at 12:18:26 AM PDT
Scenario
When adding New Quantities viaInventory Adjustmenton a New Location, note that theEst. Unit Costwill default toZero. As there are no historical transaction yet for the Item on that Location, it is expected behavior that the Average Cost on that Location is Zero. Est. Unit Cost defaults to the Average Cost of the Item per Location and not the Average Cost on the Item Level. This means that the Item's Average Cost on the Item Level will not carry over to the New Location. The Average cost on the Item Level is the Average Cost of the Item across all locations. This is documented under the field help for the Average Cost on the Item. "This field displays the current average cost of the item across all locations. Using the weighted-average method, the average cost is calculated as the total units available during a period divided by the beginning inventory cost plus the cost of additions to inventory."
Solution
To be able to addCoston theItemon theNew Location, change theEst. Unit Coston theInventory Adjustmentfrom zero to a positive amount.