Cost Management - EBS (MOSC)

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Profit in inventory as part of Item cost

edited Feb 12, 2016 4:03AM in Cost Management - EBS (MOSC) 4 commentsAnswered

Hi,

For IRISO and drop shipment, we have this requirement

Company A ships to Company B. Both companies use Std cost

Company A item cost 200, Mark up on goods sold 150. Company B would have std cost 350 so that PPV is avoided

Sceanrio1 :

Company A should records profit in Inventory of 150 when goods are shipped to Company B.

Company B should have the 150 (markup) amount as part of Inventory value. Preferably as a cost element.

When Inventory value report is run Company B- it should show two elements of cost - one with the actual cost and also an element of Profit in inventory

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