Hi Cam,

When Day End Processing is performed, the cost is determined from the costing method of the item and the amounts available for the (up to 5) costing lots from receipts. The costing method is determined from the assigned Control Account Set, and there are 5 different choices.

It's a bit of a discussion to go into detail for how each of the 5 methods work. But in general, Day End looks at the item and based on the quantity shipped and what unit costs are assigned to the item, the total cost that is assigned to the shipment and thus what goes to GL is calculated.

If the cost of the item is not what you expected, can you post what the costing method of your item is, and what information you see in Inventory for Item Inquiry with Sales/Costs and on the Costs tab for total qty on hand and total cost?