A case is when you buy a product at one price and receive in another at a different price. For example you receive a product MP-001 bought at $400 and then receive 1 piece for $1. Can the system maintain this item in my stock with 2 different costs?
Yes, you may maintain it at 2 different costs within one product code only by using FIFO COSTING and receiving the second item into a separate warehouse location. In FIFO costing, the cost is maintained distinctly within each warehouse location and costed out by warehouse location.
In this example, take MP-001 into WH-01 at $400, and MP-001 at WH-02 at $1/-. There will be 2 independent costs for this product at the 2 locations.
WHAT HAPPEN IF WE USE WEIGHTED AVERAGE COSTING?
In Wt Average costing, the system will cost the product across ALL warehouse locations.
In this example, take MP-001 into WH-01 at $400, and MP-001 at WH-02 at $1/-. The system will then cost the products into the 2 warehouses, at $200.50 each [($400 + $1) /2].