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Supply chain | Supply Chain Management, Commerce
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Released Product Detail Question

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Posted on by 306
Hello Community,

Does anyone have any insight under the Manage Cost section of the released product detail (see below)?  The reason behind my question is because we have raw materials that are part of COGS either marked as C under Revenue or None.  Does this cause any issues with costing if one or the other is selected?
 
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  • Verified answer
    Danny Bilodeau Profile Picture
    4,685 Super User 2025 Season 2 on at
    Released Product Detail Question
    Hi Jet,
    These values are informational and do not affect costing.
     
    In Inventory Management, it is common to classify items as A, B or C based on their value and turn-over.  This can be used for cycle count policies, where the "C" items (low value, high turn-around) are counted more or less frequently than the A items (high value, low turn-over).
     
    If your company is using such counting policies for inventory control, there are mechanism in D365 to suggest A,B,C classifications for items.  These mechanism will use inventory value or inventory turn and thresholds you can identify in the dialog to recommend a A,B,C value.
     
    But again, no impact on inventory costing.
  • Jsabanovski Profile Picture
    306 on at
    Released Product Detail Question
    Hi Andre,
     
    I sort of understand, but could you help me further understand by providing an example?  I'm knowledgeable to be dangerous, but don't fully understand.  Any additional detail would be greatly appreciated!
     
    Jet
  • Suggested answer
    Andreas Raithel Profile Picture
    4,961 Moderator on at
    Released Product Detail Question
    Hy,
    this part is only for ABC classification, which is a common procedure to evalatue how valuable items are.
    This can be calculated regarding to stock value, margins, revenue and stock costs. To evaluate these values you need to run the ABC classification periodic task  (Inventory management) with accordingly configured parameters.
    Based on that you can create reports for the classification of the items or select itesm based on the calculated classification e.g. for inventory counting.
    You can set the ABC values manually, but when you run the batch this will be overwritten.
    As far as I know there is no side effect on the costings itself.
     
    Hope this helps.
     

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