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We are switching to FIFO. If we switch to FIFO periodic, I understand that the system values cost of good sold at Standard Cost.
Is Standard Cost inputted or calcuated? If calculated, when how and how often?
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Barbara, there are many considerations that need to go into the decision to use standard cost vs. one of the perpetual methods of inventory valuation. Are you a manufacturing operation? What is the reason you're considering FIFO periodic?
HI Barbara
Standard cost is generally determined initially using historical information on an item. There is a field in the Item Card where you enter the Standard Cost. To update the cost there are two ways; first, physically modifying the field or running a routine that will modify one or all items using the last cost as the new standard cost.
I would suggest to implement this change at the beginning of an accounting period in order to have a clean cutoff which would require that all receipts of inventory and sales be completed but the new work for the new month not be started until you have changed the valuation method and entered standard costs. Then start receiving and selling so if you see issues w/ costing during those processes you know if it relates to the previous month or the change to Standard Cost.
Dynamics GP is fabulous in terms of Standard Cost because they actually calculate the cost during SOP, etc as a true standard cost not incorporating moving average caclulations.
Good Luck!
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