Last Buy Cost Inventory Value

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1

Hello Cetec Team,

We have a quick part cost question… Would you please let us know if the last cost inventory value of a specific part is equal to the last cost paid for the part or the last cost paid for the parts actually in stock? Example, I bought 5 items at $10 and then bought 5 items at $12. I then sell 5 items. Will Cetec cost the remaining items at $10 or $12? We are using the last buy cost setting in the Config Settings. Thanks for your time.

2

@PSC

Hey Dave,

If you have Cost Use Last Buy Cost configuration setting turned on (that should be on by default) then it depends on which BIN you’re picking/selling that inventory from. Utilizing your example you’ve provided I’ve given some details/insight below on this process:

  • You bought 5 items at $10 - we generate a receipt for the bin that inventory gets put away into dictating a unit/bin cost for those 5 items.
    • Those 5 items at $10 are tied to that receipt - so when you pick inventory from that bin we pull that bin’s cost.
  • You bought 5 items at $12 - same process here for the $12 dollars in the bin for those 5 units.
    • Those 5 items at $12 are tied to the receipt generated for that inventory - when you pick inventory from that bin we pull that bin’s cost.

The Last Buy Cost configuration setting also updates the prcpart’s ‘Default Cost’ based on the cost you last bought that part for (if you bought the $10 first, and the $12 second - the default cost for that part will update to reflect a value of $12 for the default cost field on the part record).

We utilize this via bin costs so we make sure that y’all function within FIFO rules when picking/selling inventory out of your system. The focus here being the receipt & bin costs for each bin, based on the date they were purchased/received into the system.

Please let me know if you have any additional questions!

Thanks,

Cetec ERP Support