This article provides information about cost entries and when they are created. A cost entry is a record that registers the quantity and cost of a given event.
Cost entries are aggregations of inventory transactions that are recorded on active financial inventory dimensions.
Example 1: No cost entries are created
A transfer journal event is registered. The event transfers one piece of item A from location A to location B. The Location inventory dimension isn't considered part of the cost object. Therefore, the event creates two inventory transactions and no cost entries.
Example 2: Cost entries are created
A transfer journal event is registered. The event transfers one piece of item A from site 1 to site 2. The Site inventory dimension is considered part of the cost object. Therefore, the event creates two inventory transactions and two cost entries.
Example 3: One cost entry is created
A product receipt event is registered for a purchase order. The event registers 100 pieces of item A at a unit cost of 10.00 U.S. dollars (USD). Because item A uses a serial number to track the purpose of inventory management, a unique serial number is created for each item that is received. Therefore, the event creates 100 inventory transactions and one cost entry.
Cost entries page
The new Cost entries page lets you view and control registrations of quantities and costs. This page complements the Inventory transaction and Inventory settlement pages. Records are registered in chronological order for an event. Therefore, you can quickly find and control the accumulated costs of a specific event or all events that are related to a document. Here is an example:
- A product receipt event is registered for item A. One hundred pieces are received at a unit cost of 10.00 USD.
- A few days after the invoice event is registered, the cost increases to 11.00 USD. Therefore, the total amount is 1,100 USD. A second voucher is created to account for the difference of 100 USD.
- A few days later, a miscellaneous charge of 15.00 USD to cover the transportation cost is registered on the purchase order.
The Cost entries page enables filtering by document ID and document date.
Cost entries are available only for cost objects or released products.