For inventory evaluation and trends two Costing methods are very efficient which are Last Cost and Most Recent Cost. Going further, in this blog we will discuss about difference between Last Cost and Most Recent Cost.
Most Recent Cost
The most recent cost is updated with each receiving document. Any additional costs entered against the receipt are pro-rated to all the items and are included into the most recent cost. Also Taxes entered on the receipt are included in the most recent cost. At the location details costs are getting updated after IC Day End processing is run. It is not getting updated in the location details not when the receiving is done. Inventory will use the most recent cost when inventory is allowed to go negative or no receipts are entered for an item at a given location. The most recent cost can be overridden at any time manually in location details, however it will be updated by any subsequent transactions.
Last cost, or last unit cost, is not the same as the Last in First out (LIFO) costing method. Last cost is the amount of the item on the last receiving document. The key difference between the last cost and the most recent cost is last cost does not include any additional costs entered against the receipt. Any taxes entered on the receipt are also excluded from the last cost. The last cost can be overridden at any time manually in location details, however it will be updated by any subsequent transactions.
Greytrix a globally recognized Premier Sage Gold Development Partner is a one stop solution provider for Sage ERP and Sage CRM needs. Being recognized and rewarded for multi-man years of experience, we bring complete end-to-end assistance for your technical consultations, product customizations, data migration, system integrations, third party add-on development and implementation expertise.
Greytrix offers unique GUMU™ integrated solutions of Sage 300 with Sage CRM, Salesforce.com and Magento eCommerce along with Sage 300 Migration from Sage 50 US, Sage 50 CA, Sage PRO, QuickBooks, Sage Business Vision and Sage Business Works. We also offer best-in-class Sage 300 customization and development services and integration service for applications such as POS | WMS | Payroll | Shipping System | Business Intelligence | eCommerce for Sage 300 ERP and in Sage 300c development services we offer services such as upgrades of older codes and screens to new web screens, newer integrations using sdata and web services to Sage business partners, end users and Sage PSG worldwide. Greytrix offers over 20+ Sage 300 productivity enhancing utilities that we can help you with such as GreyMatrix, Document Attachment, Document Numbering, Auto-Bank Reconciliation, Purchase Approval System, Three way PO matching, Bill of Lading and VAT for Middle East.
For more details on Sage 300 and 300c Services, please contact us at email@example.com. We will be glad to assist you.