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Excerpt

Active Costing is used to describe companies that want to see and manage cost data but do not want that data to post to the general ledger. In these companies:

  • Actual, Market, and/or Standard costs are can be maintained by Item or Lot
  • None of the items are configured to post costs to the general ledger
  • Cost adjustments are amounts and/or adjustments can be maintained (manual process)
  • Costs are not posted to the General Ledger
  • Perpetual inventory balances will include the costs that have been maintained 
  • The balance in the Inventory Balance Sheet account(s) will only match the sum of the Inventory valuation report with a manual journal entry

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