Update standard cost

hant

Dear all,

I have an item with costing method is Standard. During a month, there are a lot of transaction related to this item (purchase/sales/adjustment). there is very strange that the sales transaction amount is not equivalent to the standard cost multiplied by the quantity. Then I checked the Value Entry table and found that there were some adjustment entry created for these transactions automatically by the system. As my understanding that if we use standard cost, this cost will be used for all transactions (the variance between Purchase price and Std cost will be booked to PPV account). Could anyone explain to me why the system still adjust this cost in my case?

Thanks and regards,

hant

ara3n

there is very strange that the sales transaction amount is not equivalent to the standard cost multiplied by the quantity

The Sale amount is what you sell to the customer. What get posted to GL is cost of good sold. If the exact cost is not known just one value entry at standard cost get posted to GL. If the Inbound entry is fully invoiced, then an additional value entry an GL for the Purchase price variance get posted for the difference between actual cost and standard cost.

hant

Thanks for your respond.

You are right. The sales amount I mentioned above means COGS. The COGS is not equal to the qty * Std cost. Pls. help to explain why? We don't have any additional cost for this item.

Regards,

hant

ara3n

Well the standard cost could have changed on the item card. This does not change the history. You have to use standard cost worksheet.

hant

I know how to update the standard cost. What I mean is that the cost is adjusted automatically by the system even I don't change the cost in item card or worksheet. This is adjusted as the item with average cost. Do you have any idea?

Scott_Frappier

Hant:

Can you post a quick table with the value entries? I think this would assist in trying to identify the exact issue.

If you have an item that is set to the Standard Cost costing method, the inbound entry should always equal the standard (unless you changed it after the fact on the item card) and the outbound entry cost should always be the standard as well.

If you adjustment entries in a standard cost item, it could have been through a revaluation but I would expect a variance count to be hit instead of adjusting the actual standard.

Also - What version of NAV are you on? I have heard of issues with Standard Cost in the past...

- Scott

hant

Hi,

Thanks for your reply.

I am using Nav 4.0 SP2. Which information do you need for mentioned quick table?

Furthermore, in case I want to update new standard cost, I should use Standard Cost Worksheet or Revaluation Journal? And I want to apply this new cost from one day in the past, for example 1st of July. I am using SKU to manage inventory in different locations and each item in each location has different cost.

Regards,

hant

ecclectic

if your standard cost is not equal to average cost, qty * standard cost won't equal cogs