Entering an Item - Cost Model Card

This page describes the fields on the 'Cost Model' card of the Item record. Please follow the links below for descriptions of the other cards:

Use these options to choose a Cost Model and associated options for an Item, if the Item is not to use the default Cost Model chosen in the Item Group or in the Cost Accounting setting.

The Cost Model is the method that will be used to calculate the value of the Items that you hold in stock. For example, if you are maintaining stock valuations in the Nominal Ledger ('cost accounting'), the Cost Model is the valuation method that will be used to calculate the value to be debited to the Cost Account and credited to the Stock Account whenever you sell the Item (i.e. the value of the Cost of Sales postings). The Cost Model will also be used by the Stock List report to calculate the value of your stock.

These options will only be used if the Item is a Stocked Item or, if you are using the Cost Accounting For Plain and Service Items option in the Cost Accounting setting in the Stock module, a Plain or