If the standard cost was not specified for a stock item in the stock item master, the last purchase cost will be considered as standard cost and the closing stock value in the Stock Summary report will reflect the closing stock value as per the rate in the last purchase entry.
For Example : Consider purchasing 100 nos of a stock item. Initially pass a purchase voucher for 50nos of stock items at the rate of Rs.40. Again pass a purchase voucher for 50nos of stock items at the rate of 50. In the absence of standard cost for the stock item then closing stock value of the stock item will be 100*50 = 5000. In this case the last purchase cost is taken for valuing the stock.
Note: In the absence of standard cost and purchase entry, the closing stock value in the Stock Summary report will display incorrect values. It is recommended to specify the standard cost when selecting the Costing method as Std. Cost .
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