Building Items Prompts to Update Cost
Selling (or Building from ) Items which are Inventoried which have a negative Quantity on Hand uses the Cost, rather than the Average Cost, for any postings. If this value is zero when it should be a positive dollar amount, Inventory valuations and Cost of Goods Sold numbers may be out of balance until the Item is purchased and its Quantity on Hand restored to a zero or positive value.
Big Business 2.5 continues to allow you to overdraw your inventory (Invoice an Item prior to entering the Vendor Bill for the Item) and incorporates numerous new features to prevent anticipated problems. (3219)
When Building an Item in Big Business 2.5, you may encounter the dialogue, "Would you like to update the cost of the built item on the item card?". Big Business is asking you to update the anticipated Cost of future units of this Built Item. In the event that you sell this Item into a negative Quantity on Hand this Cost will be used for the Cost of Goods Sold posting.
Under normal circumstances, you will maintain a positive Quantity on Hand for this Built Item. When you create a Purchase Order or Vendor Bill for this Item's components, Big Business will ask if you would like to update the Cost of the the component Items. By accepting all Cost updates, you maintain the most accurate picture of your Cost of Items.
See other entries in this section, for information on Warning or Preventing the sale of Items into negative Quantities on Hand.
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