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 fills the Unit Cost field with the value from the Standard Cost field.
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
The Unit Cost field is also updated according to the costing method of the item:
If the costing method is Standard, the program updates the unit cost when you change the value in the Standard Cost field.
If you selected FIFO, LIFO, Specific or Average, 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.