Partial adjustment of inventory cost at one inventory location

1

Suppose the following:

*Item1 is purchased at $10/each for 10 units, with a total inventory cost of $100, received into Location1
*Perform inventory transfer to Location2, incurring $10/unit in additional cost ($20/each now)
*Location1 should have Qty 5, total cost $50
*Location2 should have Qty 5, total cost $100

What’s correct way to permanently change the cost of the 5 units at Location2? Meaning if I sell units from Location2, the item cost should reflect $20/each, not $10 each.

When I purchased the 10 units, I can simply fill in the freight cost on the Purchase Invoice and let Manager allocate the cost. I’m looking for a way to do the same on existing inventory as there isn’t an option to add additional freight cost when doing inventory transfer. Currently, I’m simply billing the additional $10/unit cost as a one time Purchase Invoice, which distorts the cost.

2

Inventory transfer doesnt affect the cost of inventory, you are only transferring goods from one inventory location to the other

3

Yes, I understand that the inventory transfer is strictly for moving inventory. Do you have any suggestions on how I can update the inventory cost for the moved items?

4

If these items were distinctly identifiable and have different cost than other similar items, then you can use a Production Order for that purpose.

5

The items are not distinct, but they are trackable. This is for item shipped into Amazon fulfillment that will only be sold from that inventory location.

I think your suggestion will work, I just need to record the items with a separate item id.

Thank you.