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Changed Valuation Method from Average to Standard

  • 4 April 2023
  • 5 replies
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J
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We recently migrated all our SKUs from average to standard costing due to average costs getting all mixed up. We did this by issuing out all of the inventory, updating costing to standard and entering a receipt back in.

 

I am running the inventory valuation report but continuing to see the inventory valued at average cost rather than the new standard cost of the SKU for many items.

 

One example is the following SKU:

L175:

Standard Cost - $42

QTY on Hand - 425

Expected Cost - $17,850

 

Cost per Valuation Report

Average Cost - $235

QTY on Hand - 425

Cost on Inventory Valuation Report - $99,875

 

This appears to be an issue for all SKUs with an INCost ValMethod of “A”.

Any reason why this INCost ValMethod would remain as average despite the SKU having been changed to Standard Cost?

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Best answer by Lhouldsworth 17 May 2023, 23:58

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5 replies

L
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Did you run the update standard cost process? Are you looking at the out of the box inventory valuation report or is it a custom GI?

J
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Yes the items have been updated through standard cost process. This is out of the box valuation report.

 

Here’s the SKU:

 

Chris Hackett
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Hi @jwarren were you able to find a solution? Thank you!

Chris ~ Let us know how we're doing: https://forms.office.com/r/xmJUdZ1QE5 - A member helped you, please *Like* their post. A member provided an answer to your question, please mark it as *Best Answer*.
R
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@jwarren Can you elaborate on what you mean by “average costs getting all messed up”?

L
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@jwarren The update standard cost process should create an inventory adjustment that revalues your on hand inventory. 

 

Try putting $42.08 in the pending cost field but pushing the effective date further back in time and then run the update standard cost function again. Then check inventory adjustments to see if one gets created. 

 

If that doesn't work then I’d put in a case with Acumatica.

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