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When doing a standard cost roll for one of our products, NAV calculates a different new standard cost by location. This is something I have not seen before and I am wondering what triggers this and how to correct it.
The correct price is $1.60301 per unit. $1.35301 is material cost and $0.25 is overhead. It looks as if NAV only calculates the overhead cost for location RV as the new standard cost.
The majority of our items were rolled correctly but some showed this difference by location and I can't figure out what causes this.
Some background: we are a manufacturing company and use fifo. The raw material used in the BOM is set to replenishment system "purchase". Our inventory is kept in location RV. Location "blank" should not carry any inventory. The current standard cost for location RV was manually updated to $1.60301 because we found this error, but this should preferably be all captured in the standard cost worksheet.
The screenshot below is from the standard cost worksheet.
Thank you for your help.
Hello Marco V,
Thank you for posting on the Microsoft Dynamics Business Central and NAV Forum.
I am not sure what would be happening on this scenario. One of the challenges with Manufacturing Costing with Business Central and NAV Versions is that a multiple-Location Manufacturing scenario is not fully manageable. Because the Rolled-up Cost Shares, Single-Level Cost Shares, and BOM/Routing are not available to be defined at the Stockkeeping Unit Card (SKU) Level to allow for a By-Location configuration, Manufacturing Costs and the Standad Cost Worksheet in standard Business Central and Dynamics NAV do not support fully a manufacturing cost by Location. The Standard Cost Worksheet with the default released standard functionality does not include an ability to roll a by Location/Variant cost. Is it possible that a modification/Add-on has been created and implemented?
Just to confirm, SKUs give some ability to manage By Location costing, but it typically only works effectively in a non-Manufacturing environment where Unit Cost ($) can be managed by Item/Location/Variant for non-manufacturing managed inventory. With the use of the Inventory Setup > Average Cost Calculation Type of By Item & Location & Variant, the SKU cost for by Item/Location/Variant combination will show an accurately calculated Unit Cost (LCY) for each Item/Location/Variant combination for every Item setup with a SKU.
I hope this helps clarify the information. Unfortunately, the Forum does not allow for a managed case where data can be reviewed. You could either contact your partner, or if you are partner, a suppor incident can be generated to assist in a more detailed review.
Have a great day.
Thank you for the feedback, Tom. It looks like there is one thing that was not clear and I am sorry if I didn't explain it correctly. We do not want different cost by location! I don't know why it happened and am trying to figure out how to correct it to calculate the same standard cost, no matter what the location is. We produce in 1 location only (unless a 3rd party is involved). I only have a couple of items in stock that have this issue. All other items calculate one standard cost price.
Thank you for the follow-up. Unfortunately, it is really difficult to support an issue like this with detailed data review required. You would either want to reach out to your partner, or if you are a partner, open a support Incident with the regional support team so a case can be used to manage the issue.
As for general guidance, my question would be - What are the differences in Item setup between these and others that don't show the issue? Do the Items that have the issue include unique setup, such as, is it only Items with Stockkeeping Units setup? Are there an Extensions/Add-ons involved?
As mentioned initially, a challenge with base functionality is that the system does not support multiple Location Manufacturing cost roll-up for Single Level and Rolled-up Cost Shares, so it is extremely strange to see the issue presented from my perspective.
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