Switching costing method on previously sold items Any recommendations on doing this? We were thinking we could just change over to new items and transfer the inventory but it seems way more in depth than that. When you transfer the inventory over where will it get the cost from? What about sales that were already made? Do we transfer those mid month to the new items and will it readjust to the new item costing method?

• Inventory adjust off the old, inventory adjust on the new item # • You define the new cost on the inventory adjustment, I'd start with your current cost • Change over the SO lines to the new item • Sounds like an accounting nightmare doing this mid-month. Would highly suggest consulting with your accountant on the proper way to do this

I agree it will be a nightmare doing mid month. You would also have to consider reconciliating inventory valuations between. If you have Inventory value on Average cost now and if you move to Standard costing with different cost, there will be a delta in your valuation before and after switch