Hi David - The Inventory Movement report is an excellent place to start.  This will provide a transaction-by-transaction account of an item's cost history.  After each listed transaction, you can calculate the unit cost by dividing the cost by the qty.  A common issue in these situations is a scenario such as:
1. PO is issues for item x @ $100
2. Item is received @ $100
3. Supplier invoice is entered against the receipt @ $120

This will create an invoice adjustment that would appear on the Inventory Movement report.

Hi David - The Inventory Movement report is an excellent place to start.  This will provide a transaction-by-transaction account of an item's cost history.  After each listed transaction, you can calculate the unit cost by dividing the cost by the qty.  A common issue in these situations is a scenario such as:
1. PO is issues for item x @ $100
2. Item is received @ $100
3. Supplier invoice is entered against the receipt @ $120

This will create an invoice adjustment that would appear on the Inventory Movement report.

Thank you so much, this was exactly what I needed. I was able to identify all the transactions where the cost was off. It showed that when transfers were being made between warehouses it would transfer the product at CASE price for EACH bag inside the CASE even though the request and transfer units matched. Very strange.

So each case of 30 bags was costing $60x30 instead of $2.00x30 every time a transfer was made.

Thank you for your help.
David

Classic problem.  Go to that item's Units tab, and make sure the conversion factors are correct, i.e., 1 Bag=30 Ea.

It looks like the conversions are all correct. I'm noticing that the Unit Cost is jumping dramatically between the Order Entry and the Shipping Entry. Is there some reason that would happen?

The costs in order entry are based on the most recent cost (fairly certain) and not a reflection of true costs once product comes in.  Example would be if you entered an item that is not is stock.  it will still show you a cost.  But that cost can be totally different by the time you bring in new stock.  The true costs will be reflected on the OE Invoice after a day end.

I find it easier to just use Transaction History Inquiry to see what is happening with receipts and any additional costs, or if some user did an IC Adjustment such as a QTY change instead of a BOTH increase/decrease.  That will screw your costs pretty quickly too.