This field contains the cost per unit of this item.
The program fills in the unit cost field according to what you selected in the Costing Method field:
If you selected Standard as the costing method, the program grays this field and makes it non-editable.
If you selected a costing method other than Standard, the program uses the following calculation for the unit cost:
Unit Cost = Inventory Value of items on hand (expected cost + invoiced cost) / Quantity on Hand
If you selected the FIFO, LIFO, Specific, or Average costing method, the program updates the field when you run the Adjust Cost-Item Entries batch job.
With the costing methods other than Standard, the program will also update this field during the posting of purchase invoices if one of the following conditions is true:
The net invoiced quantity of the item changes from negative or zero to positive.
The unit cost on the item card is zero.
If one of these conditions is true, the program will update the field with the value in the Last Direct Cost field for the item.
If the item uses the costing method Average, you can click the AssistButton in this field to open the Average Cost Calc. Overview window, which shows all the source value entries that the program uses for calculating the average cost, grouped and summarized by average cost period.