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Why "Last direct cost" is different from ""standard cost"/"unit cost" in item card created for finished products.

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Posted on by Dynamics 365 Busine... 60

Hi, 

In the item card for finished products, we are using "standard cost" costing method. These finished products stock are increased via Production orders. 

In the below example, we set one standard cost  - 323.39 and it appears in "unit cost" and "standard cost". However, I don't understand why "Last direct cost" is different from these costs as I have never used any cost other than 323.39 for this item card. Most likely it has got to do something with production orders that I process to produce these items but I am unable to figure out the reason for this difference! 

It would be greatly appreciated if anyone can provide me a feedback on this. Thanks!

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  • Suggested answer
    Jun Wang Profile Picture
    Jun Wang 5,700 Super User on at
    Why "Last direct cost" is different from ""standard cost"/"unit cost" in item card created for finished products.
    you would need to ensure below and interpret the cost in different places. Roll up the costs for the item. Then ensure the costing has been adjusted. If the finished item has a standard cost of 100, and a user has made a purchase of that item with cost of 30. It will show the last direct cost as 30. 
  • Suggested answer
    gdrenteria Profile Picture
    gdrenteria 5,512 Super User on at
    Why "Last direct cost" is different from ""standard cost"/"unit cost" in item card created for finished products.
  • Suggested answer
    TeddyH Profile Picture
    TeddyH 12,775 Super User on at
    RE: Why "Last direct cost" is different from ""standard cost"/"unit cost" in item card created for finished products.

    Standard cost is the cost that you decide, either manually or by running calculate function.

    Last direct cost comes from three places:

    1) Last Purchase Price

    2) Last Positive/Purchase journal unit amount

    3) Production output - the field is updated to the cost per unit of the output entry the first time the Adjust Cost - Item Entries batch job is run after the output posting.

    So your standard cost and last direct cost can differ.

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