Accolent ERP uses Average Cost (or FIFO cost if selected) throughout the system for non-Lot-controlled Products. However, whether the system is set to use Average Cost or FIFO cost, Lot-controlled products will always use Lot Costing. In Lot Costing, the system records the specific Lot Cost for every Lot when it is received in, then […]
Category: Accounting Costs
Using Product Costs
Accolent ERP records up to four different costs for each product in each warehouse. The four product costs are referred to as: Standard Cost, Alternate Cost, Special Cost and Average Cost and are used for different purposes. Standard Cost is typically used for recording the overhead-burdened business cost of a product. Alternate Cost is typically […]
Cost of Labor in Assembled Products
Accolent ERP provides Bill of Materials (“BOMs”) or Kits that can be used to create assembled or manufactured products. In addition to raw materials, labor is also typically a component of the assembly or manufacturing process to produce the manufactured product. To include the cost of the labor in the cost of the manufactured product, […]
Using Landed Costs
Accolent ERP allows the recording of the Landed Costs associated with receipt of a Purchase Order. In accordance with GAAP direct costs of products, such as Landed Costs, must be spread over the products on the PO and capitalized into inventory to be amortized to expense through COGS. The Landed Cost screen allows the various […]
Accounting for Inventory Transactions
Accolent ERP in accordance with US GAAP, capitalizes the vendor’s costs as well as other direct product costs, treated as Landed Costs, when purchasing inventory. These capitalized costs are amortized on the basis of Average Cost, to the income statement when the inventory is sold. Receiving a PO Issue a PO for goods for inventory […]