1. Standard Cost Inventory Transaction Cost Inv
Item Transaction Org Org Lot Quantity
A PO Receipt1 OrgA OrgA 1 7
A PO Receipt2 OrgA OrgA 1 8
A PO Receipt3 OrgA OrgA 2 9
A SO Shipment1 OrgA OrgA 2 8
Receipt Cost (based on PO)
Item Transaction Unit Cost
A PO Receipt1 $10
A PO Receipt2 $11
A PO Receipt3 $12
Standard Cost
$11.00
Note: set by standard cost update
What is the item’s Valuation Structure?
Cost Org + Inventory Org
Inventory Valuation Units
Shipments
Inventory Account
Org A + Org A
SO Shipment1 -8
$11.00
PO Receipt3 +9
$11.00
$11.00
PO Receipt2 +8 -1
$11.00
PO Receipt1 +7 -7
$11.00
PPV
COGS
$1.00
$1.00
$11.00
$11.00