We are testing going live with a second site. Most of the financials are working, but it seems like transfer orders are taking the cost from the oldest FIFO layer in the company, which isn’t working real well.
For example, we have Part AAA in site 2. It was manufactured in a way where the cost is 1/2 of historical cost. There are 5 of them in site 2. We purchase the part now in site 1 for use in other parts. The cost of purchasing them is 10% more than the historical cost. We do a transfer order for 10 of these parts to go from site 1 to site 2. When we do so, the cost of the first 5 parts transferred from site 1 is 1/2 of the historical cost. The other 5 are at the new 1.1*historical cost.
By playing around with quantity and cost adjustments, it looks like transfer orders (at least for us right now) are following FIFO for the company, not the site.
We are FIFO for all of our inventory, and the parts that I have tested with are all set up for FIFO at the part detail and at the site level.
Am I missing a setting somewhere that will make FIFO plant focused instead of company?
