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Item calculated cost , Standard cost , weighted average

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Posted on by Ahmad ghubj

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Hello Experts,

We use weighted average for raw materials, and Standard cost for finish goods, we calculate the FG cost the system uses the standard price for RM defined in the item prices, is there any way the system can consider the running average (inventory cost price ) for the calculations ?

Another workaround could the system update the defined standard cost for RM as the running average.

in the way currently the system work, every time average change user has to enter the new average as RM standard cost otherwise we will have production price variances.

Thank you

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Ludwig Reinhard Microsoft Employee on at

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Hi Ahmad,

If you plan doing such kind of cost price calculation and price updates then I would claim that you don't need standard costs.

Why did you evaluate your FG with standard costs if this does not seem what you need?

Best regards,

Ludwig

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Ahmad ghubj 227 on at

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Hi Ludwig,

We still need quantities variance, lotsize variance,..

But regarding the raw material price we try at least to avoid as much as we can,

It seems Microsoft will provide dual costing methodology functionality , as it was planned in 2020, but disappeared from the last release after they announced, if ever appear will solve such requirements that we nearly face in every manufacturing project

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Ludwig Reinhard Microsoft Employee on at

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Hi Ahmad,

Looks like that you really need standard costs and another valuation method in parallel.

As far as I know there is something planned but not yet GA.

Might be a good idea approaching the MS support team and ask whether and when this functionality will become available.

Apart from that, I don't see much what you can do at the moment.

(Recalculating your standard costs all the time will basically result in a current valuation method and won't help but not recalculating it seems not what you want/need)

Best regards,

Ludwig

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