Sage 100

2017 premium. What is the cost hierarchy in sales order? For example, if an item that is FIFO valuation, is entered and there is 0 quantity on hand, what cost is used? Is there any documentation on the KB? I looked and didn't find any. I believe it is ave cost, and if ave cost is 0 then standard cost. Is this correct? I have a client that insists it should be using standard cost but it is using average cost.

Does this help? http://help-sage100.na.sage.com/2018/index.htm#Subsystems/IM/ConceptTopics/Hierarchy_of_Costs.htm?Highlight=costing hierarchy

That help immensely Nicole. Thank you. So, with FIFO it is always the last cost. In this case the last cost is the same as the average cost. if the last cost is 0 then it takes the standard cost.

Correct. It takes the last cost (standard if last is zero) during SO entry then directly from the FIFO tier when the invoice is updated.

I forgot to mention this issue concerns drop ship items. Although they are FIFO the tiers aren't affected.

I thought drop ships only posted a cost if you manually entered one, on a Sales Order.

@BethBowers The cost will populate the sales order, cost field for drop ship items. Of course the cost won't post to the GL when the invoice is updated. It is important to have a cost in the sales order, because the GP on the related invoice is needed to calculate sales rep commissions, and also to facilitate the auto creation of purchase orders.

Ugh, @DougHiggs - I've totally whiffed that for years now. Guess I was thinking of ""/"" items.