In this field you can set the program up to adjust for any cost changes automatically every time you post inventory transactions. The adjustment process and its consequences are the same as for the Adjust Cost - Item Entries batch job.
Because potential cost adjustment during every inbound posting could slow down database performance, this setup field includes time options (see below) so that you can define how far back in time from the work date an inbound transaction can occur to potentially trigger adjustment of related outbound value entries.
When setting a time option for automatic cost adjustment, you should therefore select one that balances your requirements for cost accuracy with the performance level of your database. Generally speaking; the shorter the time setting, the less accurate the cost information, but the better the database performance during posting.
When an item's cost has been adjusted - automatically or manually, a check mark is placed in the Cost is Adjusted field on the item card and on any production order lines for the item.
With the following options you can specify if and when to adjust cost automatically when posting transactions:
Never - Costs are not adjusted when posting
Day - Costs are adjusted if posting occurs within one day from the work date.
Week - Costs are adjusted if posting occurs within one week from the work date.
Month - Costs are adjusted if posting occurs within one month from the work date.
Quarter - Costs are adjusted if posting occurs within one quarter from the work date.
Year - Costs are adjusted if posting occurs within one year from the work date.
Always - Costs are always adjusted when posting, irrespective of the posting date.
Beware that the use low-level codes on production BOMs will improve database performance during automatic cost adjustment.