Inventory Cost Revaluation Has GL Impact To Inventory Account
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September 29, 2023 at 5:57:21 AM PDT September 29, 2023 at 5:57:21 AM PDTth, September 29, 2023 at 5:57:21 AM PDT
An Inventory Cost Revaluation sets the standard cost of an item. This process identifies which cost and cost category will be used on transactions for this item as of the effective date. After the revaluation is performed, transactions entered use the newly established standard cost for items.
All these changes in the standard cost of the item is posted to an Adjustment Account. However, there are instances that users still generate Inventory Cost Revaluation records even though theres no change in the standard cost of the item. In such case, the GL Impact would be a Debit and a Credit to the Inventory Account of the item resulting to a zero or offsetting effect.