Hi Cam,

There are a number of transaction types that could add or subtract from the Total Cost of an item. Naturally when you receive stock then the total cost is added to. When items are shipped then the total cost is subtracted from. It could also change if the item is adjusted or transferred to a different location or item code or used in an item assembly or qty changed in a physical inventory update.

Total cost is simply a number than when a transaction is created that affects the item cost, the amount either increases or decreases. There is no 'complete recalculation' of the Total Cost based on all existing historical or outstanding transactions.

For item assembly, if the item is a component then the total cost will decrease. If the item is a bill of material (master item) then the total cost will increase.

For adjustments, each transaction has an increase or decrease setting that determines whether the total cost is added to or subtracted from, assuming that the cost is also selected to adjust.