NSC | Item Costing Method Impact on Commissions and Special Cost Processing

Scenario:
The user has a custom rebate process where certain customer/item combinations receive special pricing and special inventory costs. After an Item Fulfillment is shipped, an automated inventory adjustment moves inventory into a modified lot with a different cost to support commission calculations. The user wanted to confirm whether this process behaves differently depending on whether the item uses Lot Numbered Costing or Average Costing.

Solution:

This custom process can work reliably when the item uses the Lot Numbered costing method because the inventory cost is maintained and tracked at the individual lot level.

Under Lot Numbered Costing:

• Each lot carries its own distinct cost.