Documentation >
MAC-PAC Reference Library >
Manufacturing >
Inventory Control >
Key Concepts and Procedures >
Inventory Cost Analysis
Inventory Cost Analysis
You may extract cost and quantity information from your inventory audit trails with the Inventory Cost Analysis conversation. When requested, the Inventory Cost Analysis Report Program (IC280E) will calculate inventory cost and quantity information for audit trail transactions and store these calculations in the Inventory Cost Analysis File (IC280M).
The Inventory Cost Analysis File (keyed by company/warehouse/year/part) contains cumulative information on the actual costs and quantities of goods received into inventory. The Inventory Cost Analysis Report Program extracts the cost and quantity information from transfer orders, manufacturing order receipts, JIT flow receipts, and purchase order receipts on the Inventory Control audit trail files. The program also produces the Inventory Cost Analysis Report (IC280A) that lists the transactions and their calculations.
In addition to the cumulative cost and quantity, the file contains the inventory balance by period for each part. With the addition of custom processing, all of this information can be used to determine average costs for your inventory, and the average costs can be used to perform LIFO analysis.
Related