Passive Costing describes Items with a 'Cost Items are Items where costs are maintained at the Lot level, but the 'Actual Costs' of those Lots are not included in the costing journal entries. They are identified as Items with an 'Item Type' of "Inventory" and a 'Costing Method' of "Passive" to signify costs for the item are maintained but do not post to the General Ledger. For these Items: - Actual , Market, and/or Standard Base Costs are and Market Costs can be maintained by 'Inventory Lot'.
- Layer Costs may can be manually updatedCosts are not posted to the General Ledger.
- Perpetual inventory balances will include the costs that have been maintained The balance maintained.
- When the transactions post to the General Ledger, these line items will not be evaluated to make any of the additional costing journal entries.
- The balances in the Inventory Balance Sheet GL account(s) will only not match the sum of the Inventory valuation report with a manual journal entryvalue on the Inventory Valuation report unless manual journal entries are made.
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