How are costs managed in RAH? Particularly inventory assembly items

System
System Member Posts: 253 Moderator Moderator
in Accounts Hosted
This discussion was created from comments split from: Ask Me Anything (AMA) with Reckon CEO Sam Allert!.

Comments

  • PEstate
    PEstate Member Posts: 2 Novice Member Novice Member

    Hi,

    We’re seeking clarification on how costs are managed within the system, particularly in relation to Inventory Assembly items. We’ve noticed that there are three distinct cost fields:

    1. Cost – manually entered by the user
    2. Total Bill of Materials Cost – a calculated summary of the component costs used to build the item
    3. Average Cost – system-generated based on inventory movements

    Could you please clarify the purpose of each of these cost fields? Do we need to have a figure in each section to get accurate reporting? Additionally, we’d like to understand which of these costs are referenced in various reports, especially those affecting our Cost of Goods Sold (COGS) accounts.

    We’re aiming to ensure our reporting and accounting are aligned and accurate. Any guidance you can provide would be greatly appreciated.

  • Rav
    Rav Administrator, Reckon Staff Posts: 14,657 Reckon Community Manager Community Manager

    Hi @PEstate

    I've split your post off into its own thread here so we can get a bit more info from you on this. Are you currently utilising any of the above fields in your file and if so, which reports are you currently using?

  • PEstate
    PEstate Member Posts: 2 Novice Member Novice Member

    Hello,

    Yes, we are trying to use all three cost fields, but we aren't confident of the accuracy. It appears that unless updated each time there is a purchase the cost can be incorrect.

    The reports we are trying to ensure accurate pricing/reporting on are:

    P & L

    Inventory Valuation Summary

    Gross Margin by Inventory Item

Categories