Hello, got a question regarding COGS: I built two ...
# accounting
j
Hello, got a question regarding COGS: I built two work orders of the same assembly item. Both with quantity 10, but with different projected value (the second work order was a bit more expensive). Then i created a Sales order with quantity 15. The assembly item have "Costing Method" = "FIFO". In my mind when placing a Sales order with quantity 15, the COGS should be the complete value of build 1 (quantity 10) + half of the value of build two (quantity 5). But when i look in to the GL-impact on the item fulfillment the COGS = 15 x average cost. How is this possible when the item is set to FIFO?
l
Upon saving the transaction, NS uses average costing regardless of the costing method. It will be recalculated to FIFO based on the timing set in Setup > Accounting > Inventory Costing Preferences.
So there's a delay
j
@Luis but I´ve tried 3 times, and did two of them yesterday. My setting is set to "Every Hour" so they should be recalculated by now. Down below you can see one of the examples I did yesterday. Still uses the average cost and as you can se Costing Method is set to FIFO?
s
Can you show the GL impact of the Assembly?