Item Card Setup
Costing Method
- FIFO is the recommended costing method for all inventory items.
- If your organization prefers to use Standard Costing, please contact GoldFinch Team for implementation guidance.
Cost Fields
Display the following cost fields on the Item Card:
- Standard Base Cost
- Average Base Cost
- Last Invoiced Base Cost
Hide the following fields unless specifically required:
- Capacity Base Cost
- Material Base Cost
Cost Field Definitions
| Field | Description |
|---|---|
| Standard Base Cost | Can be imported, entered manually, or updated using the Standard Cost Worksheet. |
| Average Base Cost | Calculated automatically by the system as Total Inventory Value ÷ Quantity Base On Hand. Updated whenever beginning inventory or inventory transactions are posted. |
| Last Invoiced Base Cost | The cost from the most recently posted Purchase Invoice or the most recent finished Work Order output. |
Unit Cost Calculations
| Fields | Description |
|---|---|
| Standard Base Cost | Can be imported, entered manually, or updated by using the Standard Cost Worksheet |
| Average Base Cost | System calculated. Total Inventory Value / Quantity Base on Hand. Updated when posting beginning inventory and when new transactions are posted. |
| Last Invoiced Cost | Last posted purchase invoice cost or last output cost from Work Order. |
Unit Cost Calculations
The following table describes how GoldFinch determines unit costs for different transactions.
| Transaction | Cost Calculation Logic |
| Sales Line | Defaults to Average Base Cost × Unit Conversion. If Average Base Cost is zero, the system uses Last Invoiced Base Cost × Unit Conversion. If that is also zero, Standard Base Cost × Unit Conversion is used. |
| Warehouse Shipment Line / Sales Invoice Line | Initially inherits the Sales Line Unit Cost. During posting, the system replaces it with the actual cost from the inventory layer being consumed (FIFO). |
| Purchase Line | Uses the best (lowest) matching cost from the Purchase Price table. If no Purchase Price exists, Last Invoiced Base Cost × Unit Conversion is used. |
| Work Order (Output Item) | Initially defaults to Last Invoiced Base Cost × Unit Conversion. After the Work Order is finished, the Adjust Cost routine recalculates the cost using the actual material and capacity costs consumed. |
| Work Line (Components) | Defaults to Average Base Cost × Unit Conversion. Updated when the Production Journal is posted and again when the Adjust Cost routine is executed. |
| Item Journal Line | Defaults to Average Base Cost × Unit Conversion. If Average Base Cost is zero, Last Invoiced Base Cost × Unit Conversion is used. |
Standard Cost Worksheet
The Standard Cost Worksheet provides an efficient way to update Standard Base Costs for multiple items.
Typical uses include:
- Updating Standard Base Cost for many items simultaneously.
- Copying the current Average Base Cost into Standard Base Cost.
- Preparing annual or periodic standard cost updates.
Using the worksheet eliminates the need to manually edit each Item Card individually.
Comments
0 comments
Please sign in to leave a comment.