Different costing methods per inventory location
I have a case where we are sharing items between two subsidiaries. The item is an assembly item and costing method is standard. Subsidiary 1 is using the current item setup. In subsidiary 2 the item is purchased and we would like to value the inventory by average cost there.
The current setup is that each subsidiary has a location, and for subsidiary 1’s location the item is setup for assembly. For subsidiary 2’s location the supply type is set to purchase.
So currently the item is valued by standard costing method for both locations. But is it possible to have a setup so that subsidiary 2’s location will value by average cost?
The costing method is a core decision on the item setup and cannot be changed after transactions are recorded.
I would be considering two different item codes one for each costing method.
Then have an IA to change the stock on hand
