Standard Cost Not Reflecting on Finished Good After Completing Production Order

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Posted on by peter fun

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Hello All,

I’m trying to evaluate the final cost incurred in producing a finished good through a production order. My setup is as follows:

Finished Good: Plaster
Costing Method: Standard
Standard Cost: 122.00
Production BOM: Includes 2 components
Flushing Method: Manual (for both components and the finished item)
Standard Cost: Defined for both components

Process I Followed:

Created a Released Production Order

Filled in header details and quantity = 1

Assigned the location (advanced warehousing is enabled)

Clicked Refresh – components appeared

Created and posted the Warehouse Pick

Posted the Production Journal

Changed the status to Finished and enabled Update Unit Cost

However, I’m not seeing the expected cost reflect on the finished good.

What could be missing or misconfigured in this process?

Categories:

Dynamics 365 Business Central

Microsoft Dynamics NAV

Dynamics 365 Business Central migration

Microsoft Dynamics RMS

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Answers (1)

Gerardo Rentería Ga... 25,555 Most Valuable Professional on at

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Hi, good day
I hope this can help you, and give you some hints.

Standard costing Deep Dive in Business Central – Peik's Corner

Calculating Standard Cost - Dynamics 365 Business Central

Best Regards
Gerardo

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Verified answer

Sumit Singh 11,757 Super User 2026 Season 1 on at

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Checklist for Standard Costing in Production Orders
Here are the key areas to verify:
1. Component Consumption Not Posted
Even though you posted the Warehouse Pick, manual flushing requires you to post consumption via the Consumption Journal or Production Journal. If this step was skipped or incomplete, the system won’t calculate the cost.
Solution: Go to the Production Journal or Consumption Journal and ensure that the component lines are posted with correct quantities and locations.

2. Output Posting Without Cost
If you posted the output without posting component consumption, the system will not assign the standard cost to the finished good.
🔧 Solution: After posting consumption, reopen the production order, repost the output, or use the Revaluation Journal to correct the cost.

3. Standard Cost Not Applied
Even though the item has a standard cost defined, it might not have been applied properly.
🔧 Solution: Go to the Item Card → Recalculate Standard Cost and ensure the cost is applied. Then, run the Adjust Cost - Item Entries batch job.

4. Adjust Cost - Item Entries Not Run
This batch job is essential to update the cost entries, especially when using Standard Costing.
Solution: Run "Adjust Cost - Item Entries" and then "Post Inventory Cost to G/L" to reflect the correct cost in both inventory and financials.

Recommended Steps to Fix

Verify and post component consumption manually.

Ensure standard cost is applied to the finished good.

Run "Adjust Cost - Item Entries".

Check the Item Ledger Entries again for updated cost.

Note: This response was created in collaboration with Microsoft Copilot to ensure clarity and completeness. I hope it helps to some extent.
Mark the Answer as Verified if this is Helpful.

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peter fun 739 on at

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In their posts, they are showing that the Unit Cost is updating on the item, right?

Can’t I see the final unit cost of the output item in the Item Ledger Entries?

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Mansi Soni 8,951 Super User 2026 Season 1 on at

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Hello,

The reason you are not seeing the expected cost on the finished good is because the cost adjustment hasn’t been applied yet. In Business Central, even with Update Unit Cost enabled when finishing the production order, actual cost calculation for standard-costed items requires running the Adjust Cost - Item Entries batch job. This will apply the consumption and capacity costs from the production order to the finished good and update the item ledger entries. After running this, you’ll see the correct cost reflected.

Hope this answer will help you!

Regards,
Mansi Soni

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peter fun 739 on at

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And does output entry will show me cost amount? right now its 0.00 in the screenshort

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peter fun 739 on at

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@Sumit Singh
Thank you, this worked. But right now, I’ve only created one production order. If I create 10 production orders, will I need to do this process individually for each item, or is it possible to update the cost for all finished items at once in the Item Ledger?

Please rewrite in formal English for community posting or documentation as needed.

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