Where you enter the cost depends on the costing method you are using. Most businesses use a moving average cost. Actual costs of inventory that are transfered to the GL are calculated when items are received into inventory.

You mention you are having problems with the cost per items, although you do not mention where the problem is occurring.

If you allow inventory to go negative (an option in the company profile), then you will be allowed to ship an item before any have been received and costs calculated. This will result in your inventory valuation report not agreeing with the figure in your general ledger.

If you are using "Standard Costing" as your costing method in Inventory (Defined in the "Account Set"), then you will need to enter a Cost in the Standard Cost field. Otherwise, you caqn leave this field blank.

If you are not using Standard Costing, then you can enter an amount in "Recent Cost". This will be used as the cost of the inventory item if you sell it without receiving any quantity into inventory (driving the quantity on hand negative).

The actual (correct) cost for the item will be set when you receive some items into inventory.

Adagio Inventory can use five different costing methods. These costing methods are indicated in control account sets. This allows you to have different costing methods for different control accounts sets.

For example, you might define one control account set with a moving average method, and another with a FIFO (first-in-first-out) costing method. You can then assign these different control account sets to items using the Edit Items function.

FIFO

FIFO stands for ?First In First Out.? A FIFO costing method determines the Cost of Goods Sold using the first units received. This assumes that items in the beginning inventory were sold first. Expressed as a formula, the FIFO costing method looks like this:

Total Cost in First Lot / Total Quantity in First Lot = Average Cost of First Lot
Average Cost of First Lot x Quantity Shipped = Cost of Goods Sold

LIFO

LIFO stands for ?Last In First Out.? A LIFO costing method determines the Cost of Goods Sold using the last units received. Expressed as a formula, the LIFO costing method looks like this:

Total Cost of Last Lot / Total Quantity of Last Lot = Average Cost of Last Lot

Average Cost of Last Lot x Quantity Shipped = Cost of Goods Sold

Moving Average

The moving average method bases the Cost of Goods Sold on the average cost. Expressed as a formula, the average cost is calculated by:

Quantity on Hand / Total Cost = Average Cost

Average Cost x Quantity Shipped = Cost of Goods Sold

Standard Cost

The standard cost method is similar to the moving average costing method except that the standard cost method calculates a variance between the moving average and standard cost.

User Specified

This costing method allows you to enter the cost for each item when processing invoices and shipments. Use this costing method on items that you wish to ?force? a cost amount.
+++++++++++++++++++++
Recent Cost and Standard Cost are "reporting fields". The G/L entries depend on what Account Set you are assigning to the item.

Have a look at Edit Account Set.

You need to have a softrak partner come on site and show you how to use Adagio Inventory.

Under Edit | Control Accounts, make sure you have an account set that specifies Average Costing. Assign your items to this account set to use Average Costing. Recent cost will be updated when you receive goods into inventory, although you can enter an amount when you add a new inventory item.

"Additional costs" are costs associated with your inventory that might not be paid to the supplier. Shipping costs are the most common "Additional costs", but there may also be brokerage and other landing costs. Additional costs may be prorated over inventory when the goods are received.

"Is the unit cost included in all costs?"

Sorry, I don't understand the question.

To get your inventory value into shape, you need to do a physical inventory. Print out an inventory valuation report, and enter adjustments to the quantities on hands and/or costs to bring your inventory costs to what you know them to be.

Also, when I set up the new item and do a purchase order I don't need to enter? Please, show me the step by step to enter the new item and purchase order.

Both Purchase Order modules are developed independantly on Adagio. You need to talk to your Softrak Partner about the specifics of using the Purchase Order module you have. There is a session on Purchase Orders for Adagio tomorrow as part of the ACCPAC Users Group. You should register (it's free) here.

Your Softrak Business Partner will show you the best way to implement Inventory Control, Purchase Orders and OrderEntry, and how they integrate together. As this is business consulting, the assistance is rarely free.

Total cost is calculated as qty on hand x average cost.

"AAP-111" = 1793 x $0.00 = $0.00
"AAP-700" = 2278 x $0.08 = $182.24

You registered for the Adagio Users Group meeting this morning but did not show up. Another starts at 1:00pm Pacific time. Click here to attend. The password is "adagio4". I answered your question this morning and will do so again this afternoon.

I am disappointed that you could not find the time to attend either of the free user group meetings today.

Now the only way that you will be able to get the Adagio modules working correctly will be to have someone come on site and show you the process. This will not be free.

I am happy to put you in contact with an experienced Adagio partner who will help you get all this set up and working.