(Accounting) Move item from non-conforming stock to normal stock, with standard cost

Related topics

The following describes the accounting transactions that are created when you move an item from the non-conforming stock in one warehouse, to the normal stock in the same warehouse. The cost type in this example is Standard cost. Note: You are allowed to move an item from the non-conforming stock in one warehouse to the normal stock in another warehouse.

Prerequisites

Non-conforming cost value	41.93
Standard cost in Item file	50.00
Quantity moved	1

Created transactions

Transaction type

Description

Amount
Debit

Amount
Credit

Calculation/Result/Additional info

942

Stock value non-conforming stock

41.93

41.93 * 1 = 41.93

Non-conforming stock. The non-conforming stock value is decreased with the cost price of the item in the non-conforming stock. This cost price is defined on the non-conforming certificate on which the item is included. You can change the cost price on the non-conformity certificate if you use the Maintain non-conformity certificate cost menu item.

901

Stock value

50.00

50.00 * 1 = 50.00

Normal stock. The normal stock is increased by the standard cost value, i.e. the standard cost defined in the Item file. Note: If Cost per warehouse is active then the standard cost in the Item/Warehouse file for the warehouse into which the goods are being moved will be used.

937

Standard cost difference/Inventory movement

8.07

50.00 – 41.93 = 8.07

A transaction for the difference between the standard cost value and the non-conforming cost value is also created. Note: If you account the transaction type 937 on the same account as 901 in IBS Financials, you can never reconcile the stock valuation list in IBS Distribution with the amount of this stock account in IBS Financials. The stock value for the goods in IBS Distribution is 50.00. If you account 937 and 901 alike in IBS Financials, the stock value is 41.93 in IBS Financials.