I did an inventory count and that is the only time I have problems with residual costs....they do not appear during the month at all.

my best guess was that the inventory worksheet brought up recent costs and quantity on hand instead of the average value that was on the inventory printout. Before the physical count i had no problems at all and it wasn't until i posted it.

i let the costs default to what they were because i was assuming that the costs would be the value that they are on the GL for which is the average value.

so thanks for the advice but someone who knows the answer would be helpful....does the inventory worksheet bring up recent costs or the average unit value? My consultant could not answer that questions for me either, so it is why i came here.