How to maintain the item cost price

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We can configure three kinds of price information for a specific item on the "released product details" form.

I have two kinds of items as below:

Item(1): this one will be purchased by "purchase price" and be sold by another "sales price".

Item(2): this one will be purchased by "purchase price" and used as part of the BOM. (we have to take the cost into account)

1. For those two items, do i have to maintain the cost price for them?

2. If we have to, how to get the cost price?

(Sorry for that i cannot find any official document for this)
Many thanks

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André Arnaud de Cal... 305,849 Super User 2026 Season 1 on at

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Hi Jianrui,

When you use inventory model Standard cost you have to activate a cost price using costing versions. In all other cases AX will determine the cost price based on the transaction. E.g. if you post the purchase invoice, the purchase price will be used as cost price. If you are using misc. charges these can also be included in the cost price.

In this case, you don't have to setup the cost price on the released product details. This field is used when you create an inventory journal where an inventory increase is posted. Then a cost price is needed.

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DavidSturt 4 on at

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Hi,

In addition to Andre's comment you can also use trade agreements to specify the base sales/purchase price for a specific customer/vendor or all customer/vendors. The trade agreements will be used to default the sales/purchase price on SO/PO lines when the item or item variant is selected. Take a look at this article technet.microsoft.com/.../hh802994.aspx. Additionally, you can find a lot more information in the AX Trade and Distribution manuals.

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Royalbuddy 401 on at

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In both cases whether selling or using in BOM cost price maintained for respective item in cost price in item master will be used for consumption.

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Community Member on at

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[quote user="Andre Arnaud de Calavon"]

Hi Jianrui,

When you use inventory model Standard cost you have to activate a cost price using costing versions. In all other cases AX will determine the cost price based on the transaction. E.g. if you post the purchase invoice, the purchase price will be used as cost price. If you are using misc. charges these can also be included in the cost price.

In this case, you don't have to setup the cost price on the released product details. This field is used when you create an inventory journal where an inventory increase is posted. Then a cost price is needed.

[/quote]

HI Andre,

Thanks a lot for all your help.

For what purpose i have to configure the cost price for the item from the business point of view? cause from my point of view, In the purchase/sales process, i think we only have to configure the purchase/sales price.

(sorry for that i don't have enough business background).

William

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Weaveriski 23,620 Moderator on at

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The cost price is used to value your inventory. Depending upon the costing method your item will be valued - but this cost price is the starting point, and will (if configured) update with the next purchase invoice.

Any stock transaction, counting journal, inventory adjustment etc. will remove inventory at the cost price. So you could book an item in for $10 and if the cost price was enforced at $0 if you were then to do a stock count and not find it you would remove it from stock. At the point it was in stock it would have been valued at $0 even though you paid $10 for it - businesses need to know the costs of the assets they have and inventory is sometimes a large part of that. I would suggest you talk to a financial consultant and ask why coting inventory is important to them.

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