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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Default Costing Method
Small and medium business | Business Central, N...
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Default Costing Method

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Posted on by Thilari Hettiarachchi 61
Hi,
 
We have a client who is using average costing. We have setup default costing method as average in both inventory setup and item template. But recently we noticed that the costing method is defaulting to FIFO. Is there any other place we need to check? Also, anyone else expierienced this bug recently?
 
Thank you,
Thilari
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Business Central
  • Suggested answer
    Shathika Karunaratne Profile Picture
    Shathika Karunaratne 410 on at
    Default Costing Method
    This is a bug. I experience this in both onprem and SAAS versions.
    However they haven't rectified it yet.
  • Thilari Hettiarachchi Profile Picture
    Thilari Hettiarachchi 61 on at
    Default Costing Method
    Hi, 
     
    yes. I believe this is fixed by recent updates.
  • Community member Profile Picture
    Community member 5 on at
    Default Costing Method
    Has there been any update on this?  I'm running into the same issue when creating an Item from the Catalog Item Card.  Inventory Setup shows the Default Costing Method is Average and the Item Template I selected has Costing Method set to Average but the created Item Card shows FIFO.
  • Community member Profile Picture
    Community member 4 on at
    Default Costing Method
    Dear all, 
    we got the same issue at Version 23 for our customers.
     
    At Inventory Setup the default costing method is set to "Average".
    At Item Templates Costing Method is also set to "Average".
     
    When Users create a new item using item template Business Central always set Costing Method to "FIFO" instead to value from item template.
     
    We also believe that this is a bug. 
  • Mani Patel Profile Picture
    Mani Patel 40 on at
    Default Costing Method
    It does seem like a bug. We've got a customer on BC 22.5 and they have a similar issue.
     
    Inventory Setup: Default Costing Method = Standard
    Item Template: Costing Method = FIFO
     
    They create a new item using the Item Template, but for some reason the Item is created using the value from the Inventory Setup instead.
  • Thilari Hettiarachchi Profile Picture
    Thilari Hettiarachchi 61 on at
    Default Costing Method
    Hi,
     
    Thank you for your valuable feedback. When the costing method of the item template has the value average, but changes to FIFO. It is not because users are changing manually. It is automatically happening when a no. series assigned to the item template, which is a bug in this version I guess. I have reported the issue to Microsoft and waiting for their feedback.
     
    Regards,
    Thilari
  • Ben Baxter Profile Picture
    Ben Baxter 4,915 Super User 2024 Season 2 on at
    Default Costing Method
    You might also consider not using Average Costing.  For those consultants that have been around long enough we know Average Costing provides the biggest headaches in NAV/BC.  The system is calculating your Average Cost in the Unit Cost field for your current inventory.  This gives you visibility of your on-hand inventory average cost, but it is not used for the actual transactions.  We generally recommend using FIFO for purchased items and Standard for produced items.  Just my two cents, feel free to ignore the suggestion.
  • Suggested answer
    HVGEEL Profile Picture
    HVGEEL 288 on at
    Default Costing Method
    This is not necessarily a bug.
     
    Setting the defaults in a template and in setup... is only setting the defaults.
    Unless you have specific READ-ONLY permission setup on items, users are free to make changes.
     
    You might consider
    - item creation workflow: prevent the item to be used unless it has been approved. You will need additional permissions to avoid unwanted updates. Obviously.
    - setting up a Item Update workflow on any update of the Costing Method field. (Costing Method cannot be changed on items with entries.... so there is a only a tiny window for updates)
     

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