How should the following usage scenario be handled? For example, a project involves research and development, a part is purchased but then the design needs to be modified, and the part is repaired rather than newly manufactured. If procurement is used, it will result in excess part inventory, unless the previous version is scrapped and the repaired part is treated as a new part. However, the procurement cost is not the part's price. This will lead to incorrect pricing.
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The first issue to understand is that the product has been received into inventory and valued after purchase, but has not yet been used. When it needs to be used, it is found that repairs are required, which incurs repair costs. So, how should the cost unit price of this item be reassessed?
Considering that the original unit price of the product upon warehouse entry is 100, when we discover repair costs in the warehouse, promptly creating a purchase order for the repair expenses will help ensure our assets are properly managed.
After confirming the purchase order, we will proceed with settlement and allocate the settlement amount according to the CIF costs.
Once the relevant CIF allocation is confirmed, we can clearly see that the cost of this part has undergone significant revaluation changes.
