We can see the field Costing method in product form view as shown in the below screenshot.
If the Costing method is standard, then a Boolean will display ‘Use Last Purchase Cost’.
We can create purchase order from Purchases -> Purchase -> Quotation -> Click on the Create button. Enter the details and select products. Please note the cost of each product and Costing method from the below two screenshots.
Click on Confirm Order button and click on the shipment link button. Validate the shipment.
If we are validating Shipment, it will check for the Costing method field and Use Last Purchase Cost Boolean. If Boolean is true and Costing method is standard, then cost of the product get changed to the unit price entered in the purchase line. Otherwise the cost remains the same.
It is not applicable for Delivery validation.
Shown the updated cost price of product in the below screenshots.
Click on the ‘Change cost Method’ menu from action in product form/tree view.
A wizard will pop up as shown below asking for confirmation. Click on the UPDATE button to proceed.
We can select products and click on the wizard to set the costing method to standard and it calculates the last purchase cost of the products and assigns the value to cost.