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Item Charges and Standard Costing

Posted on by 4
Hi,
 
I am trying to implement Item charges to help the business understand the true landed costs of items in business central.
 
I have created various charges for freight, expedite, custom charges etc. and can allocate these across items on our purchase orders, this process seems to work correctly with the charge visible as an item charge in the value entries however, I always get a variance created that reverses the item charge.
 
This means that the value of the goods is not increased and these item charges don't show up when sold.
 
We are using a standard costing system.
 
Please can anyone help.?
 
Thanks
 
Spencer
  • Verified answer
    TeddyH Profile Picture
    TeddyH 12,861 Moderator on at
    Item Charges and Standard Costing
    With standard costing, your item will always fixed to the "standard cost" specified in the Item card.
    Any entries affecting the cost, such as freight, charges, etc, will be adjusted as the variance.
     
    for your scenario, you shouldn't use standard cost. it's better to use FIFO or average for your case.
  • Suggested answer
    YUN ZHU Profile Picture
    YUN ZHU 68,536 Super User 2024 Season 2 on at
    Item Charges and Standard Costing
    Hi, there is a detailed explanation of Standard Cost below, I hope it can give you some tips.
    Standard costing Deep Dive in Business Central
     
     
    Thanks.
    ZHU

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