Initial Average Cost for Items Enhancement in NetSuite 2026.2

TL;DR: Starting in NetSuite 2026.2, users of the Multi-Location Inventory feature can set the initial average cost for new inventory or assembly items. This enhancement allows better cost management and reporting across locations.

What Changed?

With this update, when creating new item records, users can now specify an Initial Average Cost in the designated column for each location. This field is not editable once the new item record is saved. Additionally, existing item records cannot have their initial average cost set or modified even if no transactions have occurred.

Advanced Item Location Configuration

If you utilize the Advanced Item Location Configuration feature, the Initial Average Cost field becomes available on the Item Location Configuration page. Here, you can set and edit the field both for new and existing item records that do not have any associated transactions. Once a transaction is created, the initial cost cannot be altered, ensuring accuracy in financial tracking.

Costed Bill of Materials Integration

Moreover, for customers using the Costed Bill of Materials SuiteApp, this initial average cost will factor into the estimated assembly costs for component items included in a bill of materials (BOM). This integration is crucial for precise cost estimation and inventory management.

For further guidance, please refer to the help topic on Entering Item and Cost Details.

Who This Affects

• Administrators: Tasked with configuring item settings and managing costs across locations.
• Inventory Managers: Responsible for precise tracking of item costs.
• Accountants: Impacted by changes to how costs are calculated and reported.

Key Takeaways

• New ability to set initial average cost for new items in NetSuite 2026.2.
• The field is not editable once saved, preventing cost mismanagement.
• Advanced configurations allow some edits on existing items without transactions.
• Supports component cost calculations in BOM.
• Enhances overall inventory management efficiency and accuracy.