Different valuations for items

Hello,

Do you have two components or 2 raw materials that are being combined into one item for resale? It is possible for different components to have different valuation methods and then be combined to a whole product.  

For these situations, we typically see multiple Inventory asset accounts in the Chart of Accounts, representing Raw Materials vs. Finished Goods. Raw materials  move to Finished goods as items are manufactured or kitted.

If you are manufacturing an item, they can be combined using production orders - Manufacturing features of Acumatica.

Alternatively, Inventory Kitting features can combine multiple items if you’re selling them as a package.  Labor can also be included as a non-stock item in a kit.

An example describing the items, their costs & methods, and how they are being combined may help us to answer with more details.

Thank you.

hi ​@Laura03 ,

Its a manufacturing scenario. So where can I see the COGS reports for the same and what all reports for Incentory eeports can be utilized out if the box?

Hello Harry,

Suppose you have a single item which you are procuring at cost $100 but producing at $50. Each Stock Item may have only one Valuation method.

If you need the original cost assigned to the item to remain with the item until the same item is sold, issued, or used as a component, set it up with Specific Cost with Lot or Serial numbers turned ON.  From the help:

Suggested next step:  In your test tenant, set up items with Specific Cost Valuation method and Lot or Serial numbers. Produce & procure the items at different costs, then consume them via sale or issue and study the costing.

Study an item of FIFO and Average cost in the same way for comparison.  Good luck!

Laura

Hello,

Which reports have you tried?

• Value of items that have not been sold can be seen on Inventory Valuation or Inventory Balance reports.
• COGS can be seen when a product is sold, on Sales Orders (Price, Cost, and Margin). 
• COGS as a whole (across all sales) can be found in the GL on the Profit & Loss reports or by viewing individual transactions in Account Details screen.

hi ​@Laura03 , So for production shall I simply create Labor and material transactions, from a Production order?

Hello,

Many components on BOMs and production orders establish the cost of manufactured items, yes.

If you have questions about how to create production orders, then I recommend a new thread with details and pictures of where you have questions.