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Former Member
Mar 31, 2015 at 04:33 PM

Item Cost of made items updated by Moving Average


Hi All,

I am having issues because we make all of the items we sell and use the moving average valuation method. There are several steps and materials used to create our "top level" sales item. When closing the lower level production orders the value of the materials and labor used is carried into the sub-assemblies and then eventually into the "top level" sales item. However, the materials and labor used to create the "top level" sales items can vary. The value that goes into the inventory G/L account is correct but when the sales item is closed from the sales order to the delivery, the value that is taken out of inventory and transferred to COGS is the set item cost for the sales item. This item cost does NOT seem to be updating when the "top level" production orders are closed at different values. The items on our sales order are put into inventory by production orders rather than purchase orders. Is the only way to get the item cost to update through purchase orders and goods receipts? I need it to update every time a unit is made based on the value from the production order.