Update standard costs

You must periodically update the standard costs of components and roll the new costs up to the parent item. The process typically consists of the following four steps:

  1. Update costs at the component and capacity levels. For more information, see the Suggest Item Standard Cost batch job.
  2. Consolidate and roll up the component and capacity costs to calculate the total manufacturing or assembly cost of the items.
  3. Implement the standard costs that are entered when you run the previous batch jobs. The standard costs don't take effect until they're implemented. Use the Implement Standard Cost Changes batch job, which updates the changes in the standard cost on items with the ones in the Standard Cost Worksheet table.
  4. Implement the changes to update the Unit Cost field on the item card and perform inventory revaluation. For more information, see Revalue Inventory.

For more information, see About Calculating Standard Cost.

To update standard costs

  1. Run the Adjust Cost-Item Entries batch job. To start the batch job, choose the Lightbulb that opens the Tell Me feature. icon, enter Adjust Cost-Item Entries, and then choose the related link. Hover over a field to read a short description. Review the results and make changes as necessary.

  2. Run the Post Inventory Cost to G/L batch job. To start the batch job, choose the Lightbulb that opens the Tell Me feature. icon, enter Post Inventory Cost to G/L, and then choose the related link. Hover over a field to read a short description. Review the results and make changes as necessary.

  3. Choose the Lightbulb that opens the Tell Me feature. icon, enter Standard Cost Worksheet, and then use one or more of the following actions:

    1. Run the Suggest Item Standard Cost batch job.
    2. Review the results and make changes as necessary.
    3. Run the Suggest Capacity Standard Cost batch job.
    4. Review the results and make changes as necessary.
    5. Run the Roll Up Standard Cost batch job.
    6. Review the results and make changes as necessary.
    7. Run the Implement Standard Cost Changes batch job.

  4. Review and post the Item Revaluation Journals page, which has been populated with entries from the previous steps in this process.

See also

About Calculating Standard Cost
Managing Inventory Costs
Design Details: Costing Methods
Finance
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