The system updates calculated price bases, such as average cost, last cost or landed costs when the finished good is added to inventory after the work order is complete. When you add that completed inventory item to a sales order, the cost on the sales order depends on the price line settings for the price line associated with the finished good.
The system reconciles the associated costs to equal all of the component material costs plus any setup and processing costs. In addition, the system adds any freight and handling costs to a step and use those costs to calculate the finished material cost. When using reconciliation, all costs must equal all finished goods costs.
There are several options when reconciling work order costs:
See Also:
Editing Costs on Work Orders