Does anyone have a clever way to override the default system costing? We have a situation where we're expecting to get tons of new items where a single item could have random price amounts, ie 27.72, 86.67, 44.67, etc and the costing would follow accordingly. Ideally we'd create one item record, set the pricing per transaction, and then be able to have the costing be X% of the price. If we do a bunch of item receipts against this item though, the system calculates to the average and ends up messing the costing on the Item Fulfillment. I thought at one point you could set the cost on the Item Fulfillment, but while I see on the form that the Rate field exists, it's hidden and I don't see how to expose it. I know we could just create the items with 27.72, 86.67, 44.67, etc and that would solve the issue, but we're going to have so many of these (potentially tens of millions) to the point where that would be a performance issue. Lot Costing works technically, but I'm not crazy about that idea either. Anyone have other ideas?

This raises some red flags in my brain, I'm not an accountant but my first question is: Is this GAAP compliant?

No not at all. We definitely want the costing to be accurate, but our cost is directly variable based on the price we sell it at because it's not a physical item. The price is variable too for that matter. Ideally when we'd sell the item at 27.72, the cost would calculate 2.78 assuming a 10% cost. the 86.67 would calculate to 8.67, and so on. That's not the right %, but just using 10% for easy math. Ideally we'd have all this running through a single item record, but if we'd receive 100 of these things at 8.67, that would obviously increase the cost to where if we'd sell one at 27.72, the cost might end up being $4 or something, which isn't accurate. I'm looking for a way for the system to see the selling price and know "oh I need to take X% of that as the cost." It appears not to be possible, but I'm hoping I'm wrong.

I'm with Rich on this one. Seems like this is manipulating the data to reach a desired margin, which is not how cost accounting is supposed to work. The cost is the cost at time of purchase, it shouldn't change based on how much you sell your item for. This sounds more like you're doing some sort of commission/rev-share kind of thing, which is not COGS. If it's not a physical item, maybe look at doing a service item and then booking a JE at month-end for your other transactions that need to happen? But I'd definitely run this by someone with a CPA before you start setting this up as a physical item with item costing, as your description doesn't sound like that's going to be the right accounting treatment for this type of item.

I might be describing it poorly, but we've been doing it this way for years and have a decade's worth of audited financials, so I doubt this is a GAAP issue. The detail I left out that might be causing confusion is that this 10% rate (again not accurate) is negotiated with our vendors, so this isn't some estimate or anything, this is our actual cost.