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Passive Costing Items are Items where Costs 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". For these Items:

  • Actual and Market Costs can be maintained by 'Inventory Lot'.
  • Layer Costs can be manually updated.
  • Perpetual inventory balances will include the costs that have been 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 not match the sum of the Inventory value on the Inventory Valuation report unless manual journal entries are made.

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