Cost Tracking Methods

When the Track Cost option is marked for an item, IntelliTrack automatically calculates or updates the item unit cost for the item unit of measure during an item receipt, item return, and item receive based upon the cost tracking method that the division uses:

• Average: the item unit cost is updated with the average unit cost calculated for the item during item receipt/return/receive transactions in the current inventory using this formula:

  (inventory quantity for the entire division for the item unit of measure x the current unit cost) + (the incoming quantity for the item unit of measure x the incoming unit cost) / (current inventory quantity for the item unit of measure + incoming quantity for the item unit of measure)

• Highest: the item unit cost is updated with the greatest unit cost for the item during an item receipt/return/receive transaction in the current inventory. This means that the item unit cost is only updated when the unit cost during the receipt/return/receive transaction is greater than the current unit cost.

• Least: the item unit cost is updated with the lowest unit cost for the item during an item receipt/return/receive transaction in the current inventory. This means that the item unit cost is only updated when the unit cost during the receipt/return/receive transaction is less than the current unit cost.

• Last: the item unit cost is updated with the last item unit cost for the item during an item receipt/return/receive transaction in the current inventory. This means that the item unit cost is updated during each receipt/return/receive transaction with the most recent unit cost.

Receipt, Return, and Receive Transactions

Receipt, return, and receiving transactions require the unit cost when an item tracks cost. The unit cost entered is used to calculate / update the item unit cost.

Note: On a Receipt order, Return order, or a Check In order\ Return, when adding the same location-track cost item number-unit of measure to the order more than once, a single line item is created. In this case, the first unit cost value entered for the item will be used for the unit cost value for this line item if varying unit cost values are entered.

• Receipt: when a track cost item is added to the order, the unit cost is required.

• Return: when a track cost item is added to the order, the unit cost is required.

 

• Check In\Return: when a track cost item is added to a check out order via the Item tab, the unit cost is required.

• Receiving: when a track cost item is added to a receiving order, the unit cost is required.

Other Transactions

Certain transactions effect item quantity, but do not effect the item unit cost. In this case, you have the option to adjust the unit cost manually for this item (see "Editing Item Unit of Measure and Unit Cost"), if it has changed as a result of one of these transactions.

Important: When your system tracks the cost for an item, be aware that if the item is added to inventory or the item quantity is adjusted in inventory, the unit cost will not be updated for this item. In this case, you have the option to adjust the unit cost manually for this item, if it has changed as a result of one of these transactions.

Warning: Be aware that when you manually adjust the unit cost for an item, it will affect the unit cost calculation / update going forward.

Inventory Transactions

The item unit cost remains unchanged when the item quantity in inventory is changed during one of these transactions:

 

• Inventory Add

• Adjust From

• Adjust To

Deactivate Item Transaction

When a Track Cost item that has inventory and a unit cost value is deactivated, the item inventory is adjusted to zero. The unit cost remains unchanged.

Issue Transaction

The Issue transaction does not effect the item unit cost for a Track Cost item.

Pick Transaction

The Pick transaction does not effect the item unit cost for a Track Cost item.