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8Hello everyone,
I am looking to validate if a specific "Hybrid" costing model is achievable via standard configuration in Business Central, or if this requires significant customization.
The Goal:
We need a Finished Good unit cost that reflects:
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Materials: "Real-life" market fluctuations (Moving/Weighted Average).
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Labor/Overhead: Stable, pre-defined monthly rates (Standard).
Proposed Setup:
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Item Costing Method: Average (for both Raw Materials and Finished Goods).
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Capacity (Work Centers): "Unit Cost" populated with a fixed rate (reviewed monthly).
The Workflow Scenario:
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Raw Material: We purchase raw material. We apply Landed Costs (Freight/Duties) via Item Charges.
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Requirement: Does the Item Charge application update the "Unit Cost" (Weighted Average) immediately upon posting the Invoice/Receipt?
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Production: We run a Production Order.
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Consumption: Consumes Raw Material at its current Average Cost.
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Capacity: Consumes Machine Hours at the Fixed Rate defined on the Work Center card (e.g., $20/hr rent + $5/hr labor).
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Output: We post the Output.
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Requirement: We expect the Finished Good value to be:
(Total Material Avg Cost + Total Capacity Fixed Cost) / Qty Produced.
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My Specific Questions:
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If the Finished Good is set to Costing Method: Average, will BC automatically accept the "Standard" rates from the Work Center/Routing lines and roll them into the Finished Good's weighted average value?
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Regarding Variance: Since the Item is set to "Average," I assume the system will simply value the inventory at the calculated rate. How do we handle the variance between the Allocated Overhead (the $20/hr rate) and the Actual G/L Bill (e.g., the actual Electric bill at month end)?
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Desired behavior: Inventory holds the allocated cost; the difference between Allocated and Actual bills hits a P&L Variance account.
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Has anyone implemented this specific mix of Average Material + Standard Capacity successfully?
Thanks!
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