agrē's costing model is based on FIFO - First In, First Out. When inventory moves out it uses the oldest available cost from cost history (based on inventory the activity date). In some situations (when you're sold into the negatives and/or inventory activity wasn’t entered in chronological order) it may appear that FIFO was not followed and you may want to reallocate costs.

Example of when FIFO can appear to be "broken":

Balance as of January 1: 0 units

Inventory Receipt of 10 units @ $6.00 as of January 10

Loadout Ticket of 2 units @ cost of $6.00 as of January 12

Inventory Receipt of 7 units @ $5.00 from January 04 entered as a backdated transaction on January 14.

Had the second inventory receipt been entered before the loadout ticket, the unit cost used would have been $5.00. But since a cost of $6.00 had already been allocated, entering a back-dated inventory receipt wouldn't change the cost of the loadout ticket.

I want to read Cost History (with screenshots) for a more detailed explanation and an example of how to use Cost Reallocation.

I have a cost on a customer return that is incorrect and needs to be changed.

I want a Location Transfer to use a specific cost, not FIFO cost.

One way this could be corrected so that the loadout ticket used the "right" cost of $5.00 would be to delete the loadout ticket and reenter it, however this is cumbersome and provides opportunity for data entry errors.

A better solution is to use the Cost Reallocation tool that lets you "reshuffle" costs by unlinking the "wrong" cost and reapplying the "right" one.

To change a transaction cost:
* indicates a required field

Navigate to Inventory > Manage > Costing > Inventory Cost Reallocation.
The Inventory Cost Reallocation window opens.

1. Choose Criteria

In the Product* box, select the product for which you want to change costs.
To search for a product click Find.

Select the starting and ending Inventory Activity Dates.

Choose the relevant Location.

Select whether you want to change costs of Outgoing or Incoming inventory.

Click Retrieve.
The Choose Inventory Activity (upper) grid is populated with the transactions that match your search criteria.

2. Choose Inventory Activity

Select which transaction cost(s) you want to change by checking the box(es) in the first column.
The Cost Rows (lower) grid is populated with the corresponding transactions used by the ones you selected in the upper grid.

e.g. If you chose Outgoing transactions and selected a loadout ticket in the upper grid, the inventory cost row(s) used by the LOT would be listed in the lower grid.

If more than one Cost Row transaction is listed, optionally uncheck any for which you want the cost left as is.
At least one Cost Row must be checked.

Click Next.

3. Select Cost History

The cost rows that will be "unlinked" are listed.

Choose how you want to deal with the unlinked cost rows.

Recost inventory according to FIFO
Use this method when you want agrē to follow FIFO in the order in which it should have been followed, for example when you back dated an inventory receipt after product had already been sold and cost history appears to be broken.

Leave cost rows estimated
Use this method as an interim step when "swapping" costs between transactions. You can't assign a cost that's already been assigned to another transaction, so you'll need to unlink it first, and save it as estimated. It will then be available for reallocation using FIFO or another cost you specify.

Recost inventory to selected cost history:
Manually select the unit cost by checking its box.

Click Save.
All postings using the original unit cost will be reversed and reposted with the new unit cost.