Here you can enter a percentage which corresponds to the indirect costs (freight and warehouse handling, for example) associated with the purchase of the item. Do not enter the percent sign. For example, if the indirect cost % is 5.5%, enter 5.5.
The contents of this field will be copied to purchase lines and item journal lines and will be used to calculate the value in the Unit Cost (LCY) field on a purchase line and the Unit Cost field on an item journal line.
Unit Cost (LCY) = Direct Unit Cost * (100% + Indirect Cost %)
Unit Cost = Unit Amount * (100% + Indirect Cost %)
When you use indirect cost % on a purchase line or an item journal line, the direct unit cost differs from the unit cost, and when you post the line, the posted item entry will also have a unit cost different from the direct unit cost. This will cause a discrepancy in the general ledger because:
when you post the line, the purchase in the general ledger will be registered at the (new) direct unit cost; but when you later run the Post Inventory Cost to G/L, the inventory valuation uses the unit cost.
You can use the Inventory - Cost Variance report to see whether there are discrepancies. If so, you can correct or apply these discrepancies by manually posting G/L entries.