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

costing method of finished product

(4) Share

Report

Posted on by Aspen

382

Generally the costing method of finished products uses Standard, but I see the Cronus company uses FIFO for finished products as well. My opinion is that FIFO simplifies the costing in comparison with Standard, which tracks the variances. For companies that don't care about variances, FIFO should works better. What do you think?

Categories:

Dynamics 365 Business Central

I have the same question (0)

All responses (5)

Answers (0)

Suggested answer

Khushbu Rajvi. 20,612 Super User 2025 Season 2 on at

Like (1)

Report

FIFO is set for some finished products, but in real-world manufacturing, Standard Cost is usually preferred because companies need cost predictability and variance tracking.

https://community.dynamics.com/forums/thread/details/?threadid=6a3574dc-5568-4b57-9ef8-16ea6d2e1b36

https://community.dynamics.com/forums/thread/details/?threadid=cac7b061-822f-4ca8-9526-35f9d22fc24e

https://learn.microsoft.com/en-us/dynamics365/business-central/design-details-costing-methods

Was this reply helpful? Yes No
Suggested answer

YUN ZHU 95,739 Super User 2025 Season 2 on at

Like (1)

Report

This depends on your company's needs. It is not the case that the Cronus company setting FIFO is the best.
For example, in my area, average cost is used more.

Hope this helps.

Thanks.

ZHU

Was this reply helpful? Yes No
Suggested answer

Teddy Herryanto (Th... 14,284 Super User 2025 Season 2 on at

Like (1)

Report

There is no need to follow the Cronus setup.

Most of the time, I have seen companies using Standard costs. There are some cases where they decided to choose FIFO or Average.

It depends on the company.

Was this reply helpful? Yes No
Gerardo Rentería Ga... 25,360 Most Valuable Professional on at

Like (1)

Report

Hi, good day
I hope this can help you, and give you some hints.

Design details costing methods - Business Central | Microsoft Learn

Standard costing Deep Dive in Business Central – Peik's Corner

Average costing Deep Dive in Business Central – Peik's Corner

Dynamics 365 Business Central: Item Costing, part 8

Best Regards
Gerardo

Was this reply helpful? Yes No
Suggested answer

Valentin Castravet 31,485 Super User 2025 Season 2 on at

Like (1)

Report

This is more of a question for your accountants than a specific Business Central question. It really depends on what they want to see.

Valentin Castravet
Work: Zander ERP Services
Blog: Dynamics 365 Business Central Insights
LinkedIn: www.linkedin.com/in/valentin-c-0500a247/

Was this reply helpful? Yes No