Select this option to adjust issues and receipts to a fixed receipt price. The fixed receipt price is a principle for inventory ...

Select this option to adjust issues and receipts to a fixed receipt price. The fixed receipt price is a principle for inventory valuation that sets the price of receipts to the active planned cost or basic cost of a product. The fixed receipt price is defined in the Price field on the Manage costs tab in the Released product details page. When this option is selected, receipts and issues are posted as follows: for purchase receipts, posting occurs at the actual cost; for purchase invoices, the price difference between the actual cost and the fixed receipt price is posted to the general ledger as a variance; the amount is posted to the loss or profit account for the fixed receipt price. Inventory is updated based on the fixed receipt price; and for sales order packing slips and sales invoices, posting occurs at the estimated cost. When you run an inventory close or a recalculation, if this option is selected, the value of issue transactions is adjusted according to the price that is specified in the Price field. If this option is cleared, the value of issue transactions is not adjusted according to this price. If the fixed receipt price is changed, and you want all new issue transactions to use the new cost, follow these steps: run an inventory close, adjust the balance for the on-hand inventory, so that the balance matches the new cost, and then activate a new planned cost.
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