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Regarding wrong unit cost value

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Posted on by Shaikh Zuber

Dear Team,

Can you please check the Unit Cost calculation on Item 19385, there is only 1 purchase recorded for this item at 38.10 while Unit Cost is calculated at 125.32

Screenshot 1

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Dynamics 365 Business Central

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Jun Wang 7,925 Super User 2025 Season 1 on at

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Regarding wrong unit cost value

a simple answer is that as a rule, the value in the Unit Cost field on the item card is based on the standard cost for items with costing method standard. For items with all other costing methods, it is based on the calculation of the inventory available (invoiced costs and expected costs) divided by the quantity on hand.

in many cases, the unit cost on item card is calculated as an average and doesn't reflect the true unit cost used by the system. you need to check how the average costing set up on inventory setup page since average cost has different options. It is hard to tell simply why BC calculate the cost as 125.32. It could be other costs rolled up to the item in question. You can test again to validate since your screenshots don't tell the whole story.
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HVGEEL 302 on at

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Regarding wrong unit cost value

Drill down on the Cost Amount (Actual) field in the Item Ledger Entries in order to make sure no additional charges were applied.

There is more to Unit Cost than Direct Cost only.
Shaikh Zuber 8 on at

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Regarding wrong unit cost value

I also executed Adjust Cost - Item Entries batch, but nothing happens. Also checked the Item in Value entries.

Below excel file of value entries for your reference.

Can you suggest what further steps i need to perform ?
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YUN ZHU 85,629 Super User 2025 Season 1 on at

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Regarding wrong unit cost value

Hi, have you executed Adjust Cost - Item Entries batch? You can confirm after running it.

In addition, if Item Charge is posted to this receipt, it will also cause this problem, such as shipping costs, tariffs, etc.

It is recommended that you search this item in Value Entries to find out the specific reason.

Hope this can give you some hints.

Thanks.

ZHU
Shaikh Zuber 8 on at

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Regarding wrong unit cost value

Can you please explain me in a simple way or alternate solution, so that I can do it in sandbox environment.
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Gerardo Rentería Ga... 20,640 Most Valuable Professional on at

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Regarding wrong unit cost value

Hi

You can review this content and see if anything it indicates may be affecting your cost.

When is the unit cost field updated About Unit Cost Calculation - Business Central | Microsoft Learn

Manually Adjust the Costs of Items - Business Central | Microsoft Learn

best regards

Gerardo