You are viewing an old version of this content. View the current version.
Compare with Current
View Version History
« Previous
Version 6
Next »
Passive 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 can be maintained by Item or Lot
- None of the items are configured to post costs to the General Ledger
- Cost 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 GL account(s) will only match the sum of the Inventory valuation report with a manual journal entry