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Excerpt

The Costing Journal Entries refer to the additional journal entries that are made for only ‘Active Cost' items when to account for the 'Actual Cost' of Items with a Costing Method of "Active", when any of the scenarios listed below occur.

  1. There is a change in the perpetual balance of a Lot containing a non-zero Actual Cost (Adjustment, Production, Receipt, Transfer, or Sales Order Shipment).

  2. There is a manual change in the Actual Cost Rate of a Lot.

  3. The cost of an AP item is applied to a Lot.

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