Appendix C
value, but it is the cost that is updated to cost of
sales and inventory in the General Ledger. Since
average cost is updated to the General Ledger,
changes to average cost
must be made through
inventory adjustment or physical count
procedures because those procedures include a
G/L value update.
IMPORTANT: Once the average cost is entered initially, you
must never change it through inventory
maintenance. It should only be changed through
inventory adjustments or physical count.
5. The Daily Sales Analysis report as well as some
reports in Sales History allow the option to show
gross margin based upon both average cost and
market cost. Purchasing and receiving, physical
inventory count, as well as some inventory reports
allow you to choose among several options for cost
(average, last, market).
37. Market Cost 1. Enter the market cost for this item if known (up
to 7.2 digits). Market cost is used to calculate
market margin.
2. The market cost of an item depends on the
Market Cost Basis. See
Market Cost Basis for more
information.
3. Different items in inventory can have different
market costs. For example, commodity items for
which costs and prices vary according to market
trends, you may wish to use list/base as market
cost and manually maintain list/base. For
hardware items or items with infrequent changes
in cost, you may wish to use last cost as market
cost.
4. The Daily Sales Analysis report as well as some
reports in Sales History allow the option to show
gross margin based upon both average cost and
market cost. Purchasing and receiving, physical
inventory count, as well as some inventory reports
allow you to choose among several options for cost
(average, last, market).
38. LIFO Cost 1. LIFO stands for “last in first out”. Whether or not
you use it is determined by how the inventory is
valued at the end of the year.
2. Enter the LIFO cost for this item (Up to 7.2
digits).
3. If you use average cost, do not enter a LIFO cost.
4. This value is manually maintained. The
computer does not calculate a LIFO cost for you.
You would enter or change this value through file
maintenance for Inventory Store Data (IM2.D).
426 Dimensions 14
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