Each individual inventory item can be assigned a “control” determining the method by which it is managed at both warehouse and financial levels. These controls include:
• Standard Cost
• Average Cost
• No Value
• No Control – Items which are not controlled at either Warehouse or Balance Sheet level and are expensed on purchase and recovered via COGS.
• No Stock – Items which are held at balance sheet level, but no record is maintained at Warehouse level. No Stock items are purchased to the balance sheet, recovered to the balance sheet via COGS and are valued by manual count adjustment.