Item Maintenance --> Valuation Method FIFO Perpetual , Standard Cost

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Posted on by Benson

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Thank you Frank.. You have advised that ..

-->By definition, the perpetual valuation methods are Actual Cost in GP. Standard Cost in GP is one of the 'Periodic' valuation methods.

I would like to have further advise regarding this matter.. & rephrase my first question:

---> We would like to apply "Standard Costing" to valuate the Inventory$ & using "Standard Costing" to transact the Manufacturing process, starting from

Buying, receiving Raw Material --> to issue Raw Material to Production ---> then Manufacturing Receipt Finished Products

For using "Standard Costing", when setting up Item Maintenance in Great Plain,

we should "Click" --> Periodic Valuation Method

we should "Click" --> Perpetual Valuation Method.

in order to set up the Great Plain correct for using "Standard Costing" method in our operation..

Thank you very much in advance for your advise.

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Answers (1)

Richard Wheeler 75,848 Moderator on at

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RE: Item Maintenance --> Valuation Method FIFO Perpetual , Standard Cost

No. That would violate basic accounting principles. You would not want to debit inventory at one cost when the goods arrived and then credit it at another cost when it was sold. Would LIFO perpetual work for you? That way when you sell the goods the COGS will be the last cost at which the goods were received.
TopDawg 10 on at

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RE: Item Maintenance --> Valuation Method FIFO Perpetual , Standard Cost

Thanks for your reply. Is there any way or a valuation method where Inventory receiving shipment is valued at current cost and inventory COGS sold at the standard cost?

Thanks again.
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soma 24,410 on at

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RE: Item Maintenance --> Valuation Method FIFO Perpetual , Standard Cost

If you using the periodic valuation method, then the inventory cost will be calculated using standard cost. Not actual cost. Perpetual valuation method is using actual cost of the inventory.

For your reference, have a look on the below link.

www.erpsoftwareblog.com/.../inventory-valuation-methods-for-a-dynamics-gp-dummy

Hope this helps!!!
TopDawg 10 on at

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RE: Item Maintenance --> Valuation Method FIFO Perpetual , Standard Cost

In GP Dynamics we are using FIFO periodic with manufacturing module, in receiving shipment, Purchase distribution is calculating inventory cost using standard cost and not actual cost of the PO? any idea

Thanks for your help in advance
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Frank Hamelly | MVP... 46,527 Super User 2025 Season 1 on at

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RE: Item Maintenance --> Valuation Method FIFO Perpetual , Standard Cost

You want to select 'Periodic' for Standard Costing. The terminology is a bit unconventional, but in GP

Periodic = Standard Cost

Perpetual = Actual Cost

Happy to help. Please feel free to ask any other questions you may have.