Serial and Lot Costing Methods
The Serial and Lot costing methods are available to use in the I/C Account Sets form only if you are licensed to use Serialized Inventory and Lot Tracking.
These methods calculate the cost of serialized/lotted items as follows.
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Serial number costs are determined by taking the total detail line cost (including any additional costs) and dividing by the number of serial numbers to get the cost per serial number.
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Lot costs are determined by taking the total detail line cost (including any additional costs) and dividing by the number of lots generated to get the cost per lot.
So for each transaction, all costs per line in the detail grid are added individually and divided by the total items per line to get the respective costs. Any cost adjustments processed subsequent to the receipt can also increase or decrease the cost of the serial numbers/lots being adjusted.
Inventory Control will use the cost for each serial number or lot in shipment transactions. For serial numbers, the total cost for the serial number in the shipment transaction will be used. For lots, if the total lot quantity is being shipped, the total cost for the lot in the shipment transaction will be used. If however, the quantity shipped is less than the total lot quantity, the cost used will be the average unit cost for the lot, multiplied by the number of units shipped.
Example:
Lot 1: Lot Quantity = 100, total lot cost = $1,000, average unit cost = $10
If only 15 units from Lot 1 are shipped, the cost used for the shipment is 15 x $10 = $150
Note: For items that use the serial costing method or lot costing method, the settings Allow Serial Quantity To Be Different From The Quantity In The Entries and Allow Lot Quantity To Be Different From The Quantity In The Entries are not available in the Serials/Lots tabs on the I/C Items form. The serial quantity and lot quantity must always be the same as the entry quantity for these costing methods.
See also
First-in, first-out (FIFO) costing method
Last-in, first-out (LIFO) costing method