Can you please confirm my understanding about Cost price/ std price etc
1. When ever there is a receipt in the raw material store, inventory price is calculated as per the setting WA method and stored in the receipt table. This average price is not used any where except for updating to the standard price table. If this is correct what value will be added to raw mat inventory.
2. upon running standard price update, the price in the receipt table is copied to standard price table only if there is stock for an item, otherwise old std price will be retained. Now all the inventory in all the warehouses (raw mat, wip, fini goods) are revalued as per the new std rate.
3. issues from the raw material store to production is valued at the price in the std price table always
4. receipt from the production to warehouse is valued actual cost and on WA basis, the rate will be stored only in the receipt table. but the inventory will be taken as per the std price table (diff goes to the prod result) upon running price update, the act cost price in the receipt table is copied to std rate
5. issues from finished goods warehouse to sales is valued at std price table and moved to cogs. (always)
Is my understanding correct, if not, can you please explain me the process updating cost price to std price step by step explaining what happens during the process.
also pl let me know where standard price table is used and where actual cost prices are used