This field shows the unit cost of the item on the line.
If the Costing Method field on the item card is set to Standard, the program will automatically retrieve the figure from the Unit Cost field on the item card.
If this is not the case, and the entry type of the item journal line is not Purchase, the program calculates the unit cost as Unit Amount plus the Indirect Cost %. The program also adds the Overhead Rate to the unit cost, if an overhead rate has been defined on the item card.
If the entry type of the item journal line is Purchase, the program calculates the unit cost as the Unit Amount, and the program posts the indirect costs and overhead separately when you post the item journal line.
The unit cost represents the value that the item has in inventory. It has no effect on the amounts on the item journal line.