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

Change from standard to average costing method

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Posted on by 95

Hello. 

I have a situation where a client wants to change the costing method for an item from standard to average costing method.

I have changed the costing method through sql.

The client was expecting that by changing the costing method to average, the unit cost of the item will change. But it didn't.

Please note that when the standard costing method was used for this item, the unit cost was 0.00

But when I changed it and I also run the adjust item cost entries batch for only this item, the unit cost still remain 0.00.

My question is whether the unit cost was supposed to change when I have changed the costing method and run the batch above?

Am I doing it wrong?

Grateful if someone can help me.

Thanks in advance. 

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  • Beginner Dynamics 365 Business Central Profile Picture
    95 on at

    Or since the unit cost was 0.00 when standard costing was used, changing it to average costing method will not make any difference, it will still be 0.00! Am I right? Grateful if someone can help me.

  • Suggested answer
    Dallefeld Profile Picture
    211 User Group Leader on at

    First, be very careful doing changes through SQL. You should steer clear of bypassing the checks and balances of the system. Did you verify that adjust cost was run before you made the change?

    To answer your question, changing the costing method does not make the system recalculate to the new costing method. Which is why the unit cost was not set to an average. It could not be set to average since all transactions were previously posted at standard.

    Was there quantity on hand? Typically, we remove the quantity on hand at standard cost, run adjust cost, verify inventory valuation is all zero, change costing method, add quantity on hand back into the system and the desired cost (note: the new cost is manually calcualted)

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