Cost Price Question on Standard Items
We are using Baan IVc4 (SP 19). We have items set up to represent the scrap which is generated through a normal manufacturing process. For every so many pounds of material required on the BOM, a negative amount of scrap material is also required. This creates a byproduct of scrap which then goes into inventory, outbounded to a sales order for the customer (our scrap dealer), and invoiced. Our current scrap items are set up as purchased items. We do not ever actually purchase these items. We do not utilize purchase price lists.
Our cost price calculation code is set to the following priority:
- Latest Purchase Price
- Average Purchase Price
- Current Purchase Price
when these items were set up, the system prompted the user to automatically populate the other purchase prices with the value entered into the Purchase Price field and they answered Yes. So now there are average and latest purchase prices. Since our cost price calculation priorities are what they are we can never update the standard cost since the Average and Latest Purchase prices are stagnant (remember we don't purchase these items). We have set up different cost price calculation codes which use the Current Purchase Price as the first priority (which will allow us to change the price temporarily), but we do not use the Single-Level cost price calculation method so eventually the top-level or a lower-level item will be recalculated using Top-Down or Bottom-Up methodology and using our standard cost price calculation code will revert the cost to the Latest Purchase Price which is not the one we want.
My question is: Although not entirely proper... since this item has no actual purchase history, is it OK to zero out the Average Purchase Price and the Latest Purchase Price for this particular item? If the answer is yes, other than verifying that there is no actually purchase history, are there any additional checks that I should make?
Thank you for any help you can provide.