I have a client that is using Moving Average Cost to value it's inventory. They have over 5,000 active inventory items.
Most of the items are consumables (food, drink, supplies) used to support the client's business as a hotel chain. Very few of the items are actually sold, but are written off to cost of sales as part of the cost of all-inclusive packages that the hotel sells to its clients.
The only sales of actual stock items occurs on an inter-company basis when one hotel supplies to another within the group.
The client would like to bill intercompany at Last Purchase Price (possible) and also take the cost of sale at Last Purchase Price (not possible), so that the cost is taken - essentially - on a replenishment cost basis and that no profit is incurred on the intercompany sale.
It appears to me that the only way to do this is to periodically revalue inventory to its Last Purchase Price. However I cannot see a way to revalue stock in this way other than manually filling in the new cost of each stock item in Inventory Revaluation.
I do have some reservations about the principle here as revaluing this way can lead to older stock being valued at higher than either its original cost or its net realisable value. However the client would like the opition, so can this process be automated, and can someone point me in the right direction?
Thx,
Mark