Dynamics Community Forum Thread Details

Standard Cost Adjustments

Hello,

We are seeing adjustments against many of our stock transactions which we cannot explain.

We are using a standard cost model, with standard costs applied to transactions at item level. Periodically users can change the standard cost against items by:

- A custom upload tool at variant level

- Manually via the UI at item level

But regardless, the standard cost applied to transactions is always the most recent and always applied at item level. This is because we are not ticking the "use cost price by variant" checkbox on the item form:

My understanding is that changing of a standard cost causes:

1. Immediately - the value of on-hand stock to be adjusted into the "standard cost adjustment" account (visible via the "standard cost transactions" form)

2. At the point of sale - adjustment of the variance between old and new standard costs to post into the "stock revaluation" account

Is this correct?

However, we sometimes see cost price adjustments against the inventory transactions for strange amounts which we cannot explain, even though the cost price posted + cost price adjusted always gives the correct standard cost against the item at the time of the transaction.

See below for an example. This item has been set up with various standard costs against both item and variant level:

This can be summarised as:

This sales order was posted physically and financially on 16/06/2017 where the standard cost was £26.95. But weirdly, the "cost amount" (calculated via the method InventTrans.CostValue()) on the transaction is showing as £-41.11, with an adjustment of £-14.16