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.
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.
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.
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.
- 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.
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