Hi Steve,

Let's do the easy ones first.

Sale
Costing is determined by costing method.

Stock Transfer
Since the total quantity of the items does not change (we don't do costing by location), the costing method is irrelevant.

Adjustment
You as specifically adjusting the quantity and total value. If you are using FIFO or LIFO then you will be able to adjust the total quantity and value in each of the 5 available buckets. Otherwise you will be adjusting the total quantity and value in bucket one.

Assembly
The only way you can increase the value of your inventory is by the additional costs incurred by the assembly process. The Assembly allows specification of a fixed and variable cost for each item built. The actual (average) cost of the components is used to determine the total cost (value) of the item you built.

So - the costing method specified in the Account Set is used only when an item is Shipped.

Having said all this, there has been discussion about costing component items as they are received. And we have also had a few requests that the component costing method be used during Item Assembly.

While this sounds simple to do, there would have to be an enormous amount of Quality Assurance that all the math was being performed correctly out to 6 decimal places including foreign currency conversion. In this particular case, the testing dwarfs the programming involved.