ANS-1899 · INVENTORY & ITEM MANAGEMENT
How Does Standard Cost Revaluation Affect Lot-Numbered Inventory in NetSuite?
NetSuite's standard cost revaluation process updates the cost for all current lot-numbered inventory and applies the new rate to subsequent transactions.
Short answer
NetSuite's standard cost revaluation process updates the cost for all existing quantities of lot-numbered inventory. Moving forward, all subsequent transactions involving these items will automatically adopt the new effective standard cost rate, ensuring consistent and accurate costing throughout the inventory lifecycle.
Scenario
Organizations utilizing lot-numbered inventory often need to adjust the standard cost of their items due to market changes or updated production costs. A common question arises regarding how NetSuite handles these standard cost revaluations, specifically concerning their impact on existing inventory quantities and future transactions for lot-controlled items.
Solution
When a standard cost revaluation is executed in NetSuite for lot-numbered inventory items, the system performs two key actions:
It revalues all existing quantities of the lot-numbered inventory currently on hand, adjusting their cost basis to the new standard cost.n
For all future transactions involving these lot-numbered items, the system will automatically apply the newly established effective standard cost rate. This ensures that all subsequent inventory movements, sales, and purchases reflect the updated cost.
Expert NetSuite Support
Need help with this NetSuite issue?
Inventory & Item Management consulting and configuration support