Noninventoriable Costing Methods

With the noninventoriable costing methods, you determine what amount to use as an item’s cost and when to post that cost to the general ledger. Unlike the inventoriable costing method, which is set on the System Controls screen, you specify the costing method for each noninventoriable item with settings on the Inventory Maintenance and the Site Prices and Quantity screens.

There are three noninventoriable costing methods that you can use. You are not required to assign the same noninventoriable costing method to all noninventoriable items.

Expense Method
Relief-Percent Method
Option-Cost Method