NetSuite Changelog
AccountingRelease NotesNew FeatureAccountingInventorySuiteGL

Use Item Cost as Transfer Cost Preference in NetSuite 2026.1

Starting in NetSuite 2026.1, the Use Item Cost preference for standard cost items on transfer orders automates cost calculations, improving accuracy.

·2 min read·4 views·NetSuite 2026.1·View Oracle Docs

TL;DR Opening

Starting in NetSuite 2026.1, you can set the Use Item Cost as Transfer Cost preference on transfer orders for items with a standard costing method. This enhancement automates cost calculations during item transfers, ensuring accurate general ledger postings and improving financial reporting.

What's New

This new feature allows the Use Item Cost as Transfer Cost preference to support standard cost items within transfer orders. When utilizing this preference, NetSuite will reference the item's standard cost at the source location as the transfer cost during the movement of goods between locations or subsidiaries. This improvement is designed to enhance the accuracy of cost accounting and minimize the need for manual adjustments.

Benefits

  • Automated Calculations: Automates the cost calculation process when transferring standard cost items.
  • Accurate Posting: Ensures that cost variations are correctly recorded in the General Ledger and Purchase Price Variance (PPV) entries.
  • Reduced Manual Effort: Minimizes the manual input required by automatically referencing the item's cost at the source location.
  • Improved Reporting: Enhances the reliability of financial reporting related to inventory transfers.

Implementation Steps

To enable this feature:

  1. Navigate to Setup > Accounting > Accounting Preferences.
  2. Locate the Use Item Cost as Transfer Cost option and ensure it is enabled for standard cost items.
  3. Review the transfer orders to ensure they are utilizing the standard costing method.

Who This Affects

  • Accountants: For accurate financial reporting.
  • Inventory Managers: For better cost management during transfers.
  • Administrators: Responsible for configuring accounting preferences.

Key Takeaways

  • The feature improves accuracy in transfer orders involving standard cost items.
  • Reduces manual adjustments by automating cost calculations.
  • Enhances financial reporting and accuracy in cost variance calculations.

Frequently Asked Questions (4)

Is the 'Use Item Cost as Transfer Cost' preference applicable to all costing methods in NetSuite?
No, this preference is specifically designed for standard cost items on transfer orders.
Do I need to manually adjust the General Ledger after enabling the 'Use Item Cost as Transfer Cost' preference?
The feature automates cost calculations during item transfers, ensuring that cost variations are accurately recorded in the General Ledger, reducing the need for manual adjustments.
What steps are required to enable the 'Use Item Cost as Transfer Cost' preference?
To enable this feature, navigate to Setup > Accounting > Accounting Preferences and ensure the 'Use Item Cost as Transfer Cost' option is enabled for standard cost items.
What happens if transfer orders are not using the standard costing method?
The 'Use Item Cost as Transfer Cost' preference specifically supports standard cost items. Orders not using the standard costing method would not benefit from this feature.

Weekly Update History (1)

SuiteScriptadded

Added an entry for Item Subrecord Script ID Changes for SuiteQL and SuiteAnalytics Connect.

View Oracle Docs
Source: Use Item Cost as Transfer Cost Preference Now Supports Standard Cost Items on Transfer Orders — Oracle NetSuite Help Center. This article was generated from official Oracle documentation and enriched with additional context and best practices.

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