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How does Recalculate Estimated Cost on Creation of Linked Transactions Preference = Always work?

edited Nov 14, 2022 4:22PM in Ask A Guru 6 comments

I am trying to understand the expected behavior and effect of Recalculate Estimated Cost on Creation of Linked Transactions Preference set to Always

We use Average Costing Method and have Items' Cost Estimate Types set to various types (Average Cost, Last Purchase Price and Derived from Member Items). So as you may expect, Product Cost (estimates) on Sales Reporting does not tie to General Ledger Cost of Sales. We understand this; but would like to minimize the variance and understand what we are seeing in transactions.

I'll phrase my question using an example:

Sales Order is entered for 1 Qty Item "Widget" with Cost Estimate Type = Last Purchase Price

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