Hey All! We currently use standard costing and it works well considering we have a single manufacturer for each SKU. We are introducing a buyback process that would purchase the goods back from customers at a significantly reduced price. The standard costs will make our COGS incorrect for these units and the team does not want to introduce a new SKU as the inventory is fungible with our other product. We are trying to figure out the best way to handle this process and were curious if anyone had faced a similar situation before? We are exploring switching these SKUS to FIFO but please let me know if you have any tips here!

Is it how you're presenting the variances? I would have thought a discount on purchase would be presented as a purchase price variance? If you're inventorying at std cost, there will need to be a varaince somewhere unless you create a new std cost template which can be used to quarantine for this scenario (location maybe?)

Yea I think you're getting at the main point. We really dont want to have these units hit PPV

Do you still want them reflected in inventory at std cost?