Dear All,
Can anyone tell me is there any way to set up F&O so that in one legal Entity we could have Standard cost for manufacturing items and Actual cost for other items that are just bought and sold?
Thank you in advance for any advice.
Tatiana
Hi Tatiana,
You can make this setup by assigning different item model groups to your manufacturing items and the items that you buy.
The item model groups that you assign to your manufacturing items can have the standard cost method selected while the item model groups that you use for you other items have a FIFO, LIFO, ... valuation selected.
Best regards,
Ludwig
Like Ludwig mentioned, it is possible to create multiple item model groups and assign different values to different items. You have to align with the Controller how it all should be represented for reporting.
Have a look at the release notes where a feature is announced to be able to have multiple valuations for single items. This will solve some conflicts where standard cost is not always recognized an accounting principle for reporting (IRFS). docs.microsoft.com/.../global-inventory-accounting-add-in-dynamics-365-supply-chain-management
As Ludwig & Andre provided the details, yes you can have multiple Item model groups with different Item Models:
Just be careful on Accounting policy discloser requirements in your country.
The system will allow you to use multiple Item costing for different types of Items.
Thanks,
Good morning TatianaPavliuk,
Have you found the answer to your question or do you need any other help/support from the community?
Ludwig, I am sorry for taking so much time to give you an answer.
Yes, thanks to you I now understand how different Item model groups can be set up and this may be a very good solution for us as we do not want to use Standard cost for items that we buy to sell. We do not assemble them or perform any manufacturing actions with them. The Item is bought for $100 from a vendor, stored at a warehouse for a while with a tracking dimension like batch or serial number, and then sold for $120. (Amounts are given as an example). At the same time we have a manufacturing business within the same legal entity but the Items bought by each of businesses will never be the same.
My other concern is that we probably will need to perform Inventory Closing procedure at the end of every month (Inventory Management - Periodic tasks - Closing and Adjustment). Standard cost didn't require that but FIFO will. Am I right?
Standard costing does not require to execute the closing and adjustment process.
It is, however, still recommended doing that - among others - to avoid that people backdate inventory transactions.
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