Inventory Cost for Transfer Journals and Transfer Orders

Managing Unit Costs in Transfer Transactions

When posting transfer transactions in GoldFinch, the system automatically calculates and updates the Unit Cost for the transaction based on the Inbound ILEs (Item Ledger Entries used for transfers). These Inbound ILEs may come from sources such as Purchase Orders, Work Orders, or Item Adjustments.

If the Unit Cost for the Inbound ILEs is updated later, the Daily Adjust Cost Routine , which runs automatically at night, will recalculate and update the Unit Cost for all Outbound ILEs—including transfer transactions, Sales Order Shipments, and Work Order Consumptions.

Important Guidelines for Unit Cost Adjustment:

• Do not edit Unit Costs directly on Transfer Journals or Transfer Orders. To change the Unit Cost for transfer transactions, you must update the Unit Cost at the Inbound ILE level.

• Any direct changes to Unit Cost in a transfer transaction will be overridden by the scheduled Daily Adjust Cost Routine, which recalculates based on the original Inbound ILEs.

Steps to Adjust Unit Costs:

1. Use Revaluation Journals:

   • To update the Unit Costs of Inbound ILEs, use Revaluation Journals. This allows you to modify the cost at the source, ensuring the cost flows through correctly to transfer transactions.

2. Run the Daily Adjust Cost Routine Manually:

   • After updating the Unit Cost for the Inbound ILEs using Revaluation Journals, run the Daily Adjust Cost Routine manually to apply the updated costs to the transfer transactions immediately. This avoids waiting for the automatic overnight update.

Important Considerations:

• Revaluation Journals cannot directly fix the Unit Cost for transfer transactions. If the Unit Cost is not edited at the Inbound ILE level, any changes you make to the transfer transaction’s Unit Cost will be reverted by the Daily Adjust Cost Routine.

• To add additional landed costs to transfer transactions, refer to the instructions in the Actual Landed Cost Assignment for FIFO Costing. This will guide you on properly assigning additional costs such as shipping or handling to ensure accurate cost tracking.

By following these steps, you ensure that all transfer transaction costs are correctly calculated and maintained in the system without manual overrides being reversed.