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Dynamics 365 Community / Forums / Supply chain | Supply Chain Management, Commerce / Wrong estimated cost
Supply chain | Supply Chain Management, Commerce
Suggested Answer

Wrong estimated cost

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Posted on by Selina Thomas 62

Hello,

There’s an issue with the average cost of item XXX.

VR COST per bag Rs6,969,738

The total value of 780 bags = Rs5,436,396,120

There’s an issue with the estimated cost of BO096543/BO96966 – however when closed – the realised cost amount has been updated correctly

 

Can you please advise and help?

Best regards,
Selina THOMAS

Categories:
Dynamics 365 Supply Chain Management
I have the same question (0)
  • Suggested answer
    SoumitraforD365 Profile Picture
    SoumitraforD365 248 Super User 2026 Season 2 on at

    Hi Selina,

    Here is my Observations based on the scenario/screenshot you have mentioned in your query.
    Quantity: 780 ea
    Inventory Value: 5,436,396,120.91
    Average Unit Cost: 6,969,738.62

    The average cost is simply: 5,436,396,120.91÷​780= 6,969,738.62
    Therefore, the average unit cost itself is mathematically correct based on the current inventory value. 

    Regards

  • Suggested answer
    Giorgio Bonacorsi Profile Picture
    Giorgio Bonacorsi 3,549 Super User 2026 Season 2 on at

    Hello,

     

    It looks like for the BOM, the estimated hours consumed are higher than your released cost. The cost estimate is derived from the price entered in the category price tied to the BOM activities. That can be a starting point to investigate why the system is overestimating the cost.

     

    Thank you,

    Giorgio

  • Selina Thomas Profile Picture
    Selina Thomas 62 on at

    Hello All,

     

    Thank you for the information provided. 

    We will check and continue with the analysis depending on what you suggested.

     

    Best regards,
    Selina THOMAS 

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