| # Cost aspects of borrow transfers A borrow transfer does not affect the inventory value per item of the lending project, but the aggregated loaned inventory is subtracted from the total inventory value. The total inventory of the borrowing project is increased with the aggregated borrowed inventory value. The value per item is affected only if the item value of the borrowed inventory is different from the item value of the borrowing project. Example The inventory valuation method is MAUC by project. Project A has four items in inventory, each with a value of 20. Therefore, the total value is 80. Project A borrows 4 items with a total value of 40 to fulfill a shop floor requirement of 8 items. The total inventory value of project A is now 120, and the value per item is 15. The moment the borrow transfer is carried out, the 8 items are issued to the shop floor and no items are left in inventory. Related topics Cost aspects of borrow/loan and payback transfers Examples of integration transactions for borrow/loan and payback transfers Cost peg transfers - borrow/loan and payback |