Table of Contents

1. The Inventory Setup form can be accessed from Departments à Warehouse à Setup à Inventory à Inventory Setup.

2. It is recommended that both the Automatic Cost Posting and Expected Cost Posting fields be checked, and the Automatic Cost Adjustment field set to Always. These settings will insure that costs are as accurate as possible at the time of product distribution to an Agency.

1. In Order for Lot Costing to function as designed, serialized lots must be used. A unique Lot No. series must be assigned on each Item Card. A sample setting on the Item Tracking FastTab is shown below:

2. The values entered for Handling Fee, VAP Fee, Cost Adjustment Type & Cost Adjustment Factor will determine the Unit Fees to be calculated for each new Lot and subsequently carried forward on to an Agency Order when the product is distributed. As each new Lot is created on a Purchase Order, these values are retrieved from the Item Card and stored on the Lot Card. If these values are changed on the Item Card, the new values will be used on all new Lots created.

1. The first thing to be observed when entering items on a Purchase Order using Lot Costing, is that after the Item No is entered, the Direct Unit Cost excl. Tax is populated with the last Unit Cost  for this Item.  This amount can be edited as necessary prior to Posting as Receive or Invoice. This cost will post to the Unit Cost on the Lot Card. Second, once the Quantity is entered, a Lot No. is automatically assigned as a result of the Setup in the previous section.

1. Once an item is entered on an Agency Order, lot selection is based on FEFO (First Expired, First Out). Depending on the setup, this selection is performed on a Warehouse Document or in the case of a Shopping Area, on the Agency Order itself when Released, as shown below.

2. As displayed above, multiple Lots were chosen to fulfill the Quantity entered on this Agency Order. Each Lot has a Unit Cost in the amount that was entered and posted on the original Purchase Order. In addition, the Unit Fees Excl. Tax are calculated and entered automatically based on the Lot’s Unit Cost and the value of the Handling Fee, VAP Fee, Cost Adjustment Type & Cost Adjustment Factor that was retrieved from the Item Card at the time of the Lot being created on the Purchase Order, as explained above under the section, Purchase Orders.

1. When journal entries are being used to distribute or adjust Items and their associated Lots (Negative or Positive Adjustments including Physical Inventory, Item Journal Adjustments, and Kitting Adjustment Entries) Ceres will use the associated Lot Unit Cost to assign the Unit Cost/Amount on the Item Journal Line entry. If the User attempts to adjust the Unit Cost and Lot Costing is selected, the following message appears.