Small and medium business | Business Central, N...

Updating Unit Costs Manually in production

(7) Share

Report

Posted on by Tris15

400

Hi Everyone

Regarding the costs for output items in production - the below screenshot pulls my unit cost from the item cards correctly

My question is how would I go about manually changing the unit cost like below? What would be the best way to do this so that when I post my production journal the unit cost pulls correctly from what I entered on my production order lines

My costing method is set to FIFO for all these items

Regards,

Categories:

Dynamics 365 Business Central

I have the same question (0)

All responses (7)

Answers (0)

Suggested answer

Holly Huffman 6,530 Super User 2025 Season 2 on at

Like (1)

Report
Good morning, afternoon, or evening depending on your location!

To manually change the unit cost for production items and ensure the updated cost reflects correctly in your production journal, here’s an approach:

Adjust Unit Costs on the Production Order:

Navigate to the Production Order in Business Central.

In the Production Order Lines, directly enter the desired unit cost for each item. This ensures the changes are specific to the production order, rather than the item card default.

Use the Output Journal for Manual Adjustments:

Open the Output Journal for the production order.

Manually update the unit cost in the journal entries for the output items.

Ensure the costs align with what you entered in the production order lines.

Validate FIFO Cost Method:

Since your costing method is FIFO, the cost flow should align with the sequence of inventory receipts. Ensure that the adjusted unit cost doesn’t conflict with the FIFO valuation principles.

To ensure accuracy, verify that the updated unit costs are consistent with the current FIFO layer for each item.

Post the Production Journal:

After updating the unit costs, post the Production Journal. The system should pull the manually entered unit costs from the production order lines, provided the changes were saved correctly.

Test in a Sandbox Environment:

Before implementing changes in the live system, test the process in a sandbox environment to ensure the updated costs flow through as intended.

Tips to Watch For:

User Permissions:

Ensure that users have the appropriate permissions to make manual adjustments to unit costs in production order lines and journals.

Audit Trail:

Enable tracking for manual changes to production orders to maintain an audit trail for cost adjustments.

Reporting Impact:

Understand how manual cost changes might impact reports like production costing and inventory valuation. Ensure alignment with financial reporting requirements.

Hope this helps!

Was this reply helpful? Yes No
Suggested answer

Khushbu Rajvi. 20,275 Super User 2025 Season 2 on at

Like (1)

Report

Please check this: https://learn.microsoft.com/en-us/dynamics365/business-central/inventory-how-adjust-item-costs

https://valentincastravet.com/unit-cost-fields-on-the-item-card-in-dynamics-365-business-central/

Was this reply helpful? Yes No
Suggested answer

KasparsSemjonovs 4,764 Super User 2025 Season 2 on at

Like (3)

Report

BC system is not built, that you can manually calculate and indicate the Unit cost different for each Production Order.
The Unit cost is calculated from the processes/items needed to create the finished good.

For items used - the cost is pretty much straight forward - the cost of what you paid for the item + indirect cost + overhead rate.
For work centers used You can set the Unit cost for each hour (or other unit of measure used to calculate the usage of this resource) or You can specify "Specific Unit Cost", and then You are able to indicate the Unit cost for each Routing line, that is linked to the finished goods item that you are using.

If You want to provide a manual unit cost, then only way is that after the good is finished You use Inventory Revaluation journal, and just change the total cost of the produced item.

Was this reply helpful? Yes No
Suggested answer

Mansi Soni 8,907 Super User 2025 Season 2 on at

Like (3)

Report

Hello, To manually adjust the unit cost for output items in production, you can update the Unit Cost per field directly on the Production Order Lines before posting the Production Journal. However, since your costing method is FIFO, Business Central will still follow the FIFO cost flow when valuing inventory. If you need to override this, consider adjusting the cost in the Item Revaluation Journal however always review the impact on costing and financial reports before making any changes.

Hope this answer will help you!

Regards,
Mansi Soni

Was this reply helpful? Yes No
Suggested answer

Jainam M. Kothari 15,631 Super User 2025 Season 2 on at

Like (1)

Report

Hello,

To manually change the unit cost for production items in Business Central, navigate to the Production Order and directly enter the desired unit cost in the Production Order Lines. Use the Output Journal to manually update the unit cost for output items, ensuring alignment with the FIFO cost method. Verify that the updated costs match the current FIFO layer, then post the Production Journal. Test the process in a sandbox environment before applying changes live. Ensure users have the necessary permissions, maintain an audit trail, and understand the impact on financial reports.

Was this reply helpful? Yes No
Suggested answer

YUN ZHU 95,331 Super User 2025 Season 2 on at

Like (0)

Report

Hi, Just adding some information, there is an update on cost calculation in the latest version.

Achieve greater accuracy in manufacturing costing

https://learn.microsoft.com/en-us/dynamics365/release-plan/2025wave1/smb/dynamics365-business-central/achieve-greater-accuracy-manufacturing-costing?wt.mc_id=DX-MVP-5004336

Experience improved usability in manufacturing

https://learn.microsoft.com/en-us/dynamics365/release-plan/2025wave1/smb/dynamics365-business-central/experience-improved-usability-manufacturing?wt.mc_id=DX-MVP-5004336

Thanks

ZHU

Was this reply helpful? Yes No
Vahid Ghafarpour 12,090 Super User 2025 Season 2 on at

Like (1)

Report

If any of the responses helped resolve your issue, please take a moment to mark the best answer. This helps others in the community quickly find solutions to similar problems.

To do this, simply click the "Does this answer your question?" button on the most helpful response and like the helpful posts. If your issue is still unresolved, feel free to provide more details so the community can assist further!

Thanks for being an active part of the Dynamics 365 Community!

Was this reply helpful? Yes No