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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Two Inventory Valuatio...
Small and medium business | Business Central, N...
Answered

Two Inventory Valuation Methods

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Posted on by JE-20081519-0 3,291
Hi:
 
A manufacturer wants to use a blend of two valuation methods.
 
He wants the manufactured items to use Standard Cost, while purchased items use FIFO.
 
From both a Best Practices and technical standpoint, what are the issues with this procedure (if any)?
 
Thanks!
 
John
Categories:
Dynamics 365 Business Central
I have the same question (0)
  • Verified answer
    Teddy Herryanto (That NAV Guy) Profile Picture
    Teddy Herryanto (Th... 14,284 Super User 2025 Season 2 on at
    This is quite common.
    You just need to setup raw materials to use FIFO and finished goods to use Standard Cost.
  • Verified answer
    OussamaSabbouh Profile Picture
    OussamaSabbouh 7,661 on at
    Hello John,
     
    Mixing Standard for manufactured items and FIFO for purchased items is totally supported in BC/NAV.
    No technical issues — it’s actually a common setup in manufacturing.
     
    Only things to watch:
     
    You must maintain Standard Cost rolls for produced items.
     
    Variances will appear (normal for Standard).
     
    Materials consumed still use FIFO layers — this is expected.
     
     
    So: Allowed, safe, and widely used.
     
    Regards,
    Oussama Sabbouh

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