Every commodity cost component assigned to a commodity class has its own cost factor. When a commodity class is assigned to a commodity on a production or purchase activity, the cost factors for that class's defined cost components determine a cost for the item. These cost factors typically fluctuate and need to be maintained on a periodic basis.
Steps
In the search box, enter Commodity Cost Periods, and then choose the related link.
Click the first empty line and in the Starting Market Date field, enter the date on which the new cost factors take effect.
In each column, fill in the cost factor you want to assign to the commodity class cost component for the new cost period.
On the Actions tab, in the General group, choose Post to post the new commodity cost factors.
When you post the commodity cost factors and run the Adjust Cost - Item Entries batch job, the program adjusts the value of consumption entries in a commodity item's ledger with a posting date that falls after the starting date of the new commodity cost period. This adjustment is based on the commodity class associated with a consumption entry. The program uses the new cost factors defined for the commodity class's assigned cost components to determine a new cost, then adjusts the existing cost accordingly. Once consumption entries are adjusted, the cost for the corresponding positive item ledger entry is also modified as necessary.
Posting commodity cost factors instructs the program to adjust existing entries. If additional item entries are made in a period for which cost factors have already been posted, post these factors and run the adjust cost routine again to apply them to these new entries.