"Cost Amount (Non-Invtbl.)" field on Value Entries and ILE: When is this field updated?

Updated: Jul 14

Agenda

The purpose of this blog is to understand how the value gets updated in the Cost Amount (Non-Invtbl.)" field on Value Entries and ILE and what is the significance of this field.


We all know about the cost amount (Actual) and Cost Amount (Expected) field on Value Entries and ILE. But, the Cost Amount (Non-Invtbl.) field often gets overlooked by consultants as this we don't generally see getting updated in a general Sales-Purchase transaction.


So, let's understand this.


Explanation

The Cost Amount (Non-Invtbl.)" field on Value Entries and Item Ledger Entries gets updated in these three scenarios only:


  1. When the transaction is posted with Non-Inventory Item

  2. When the transaction is posted with Service Item

  3. When we apply Item Charge to the outbound transactions like Sales Shipment Lines and Return Shipment Lines.


Demonstration

Transaction with Non-Inventory Item



I have created a Non-Inventory item as shown below.

I posted a Purchase Order (completely shipped and invoiced) with this Non-Inventory item and here you can see the value being updated in the Cost Amount (Non-Invtbl.) field.




Transaction with Service Item


I have created a Service Item item as shown below.


I posted a Purchase Order (completely shipped and invoiced) with this Service item and here you can see the value being updated in the Cost Amount (Non-Invtbl.) field.



Transaction with Item Charges being applied on outbound document


Create a Purchase Invoice and select the Item charge on Line and then go to Item Charge assignment. If you choose the below-marked option from the Item charge window and post this transaction then the Cost Amount (Non-Invtbl.) field would get updated.



In this example, I have applied the Item charge to the Posted Sales Shipment lines and posted the document.


Note that the Cost has been updated in the Cost Amount (Non-Invtbl.) field on the value entries for the Purchase side but the same value is updated on the sales entry on which this item charge is loaded in the ILE.




Important Points to Note

  • Cost Amount (Non-Invtbl.) is never posted to GL. So, don't expect the Cost posted to GL to get updated with the amount in the Cost Amount (Non-Invtbl.) field after cost adjustment.


  • Cost Amount (Non-Invtbl.) doesn't hit the GL. But It does have an impact on the Item profitability. This you can observe in the Item Statistics.



That's all in this blog! See you in the next one.


Ciao!

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