Depending on the setting you’ve chosen for an item, its inventory cost is either automatically calculated based off previous AP invoices / commissary orders or is manually entered and maintained.
When an item’s cost isn’t automatically updating or is higher or lower than expected, it is always advisable to first try running the 'Verify Item Setup' first and then the 'Update Recipe Costs' functions. These are located under the 'Item' drop-down menu on the top ribbon of your screen, and they allow the rest of the system to process any recent adjustments to units of measure and item / recipe setups.
If running these functions still is not producing the expected cost, you may need to make sure the item’s units of measure are mapped out correctly for conversion purposes. Another common area to check for is if the item has any active item locations, as these are designed to override the general item costing process for each associated location. If assistance is still needed, please contact R365 Support.
Quick videos on troubleshooting costing issues:
To view a cost analysis for each item, run the Item Cost Analysis by Location report through 'My Reports'.