How to: Update Standard Costs

You must periodically update the standard costs of components and roll the new costs up to the parent item. The process typically consists of the following four steps:

1. Update costs at the component and capacity levels. For more information, see Suggest Item Standard Cost.

2. Consolidate and roll up the component and capacity costs to calculate the total manufacturing or assembly cost of the items. For more information, see Roll Up Standard Cost.

3. Implement the standard costs that are entered when you run the previous batch jobs. The standard costs do not take effect until they are implemented. For more information, see Implement Standard Cost Change.

4. Implement the changes to update the Unit Cost field on the item card and perform inventory revaluation. For more information, see Revaluation Journal.

For more information, see About Calculating Standard Cost.

After you understand the process, you can use the following summary of steps.

To update standard costs

1. Run the Adjust Cost - Item Entries batch job.

2. Run the Post Inventory Cost to G/L batch job.

3. Open the Standard Cost Worksheet and use one or more of the following functions:

   1. Run the Suggest Item Standard Cost batch job.

   2. Review the results and make changes as necessary.

   3. Run the Suggest Work/Mach Ctr Std Cost batch job.

   4. Review the results and make changes as necessary.

4. Run the Roll Up Standard Cost batch job.

5. Review the results and make changes as necessary.

6. Run the Implement Standard Cost Change batch job.

7. Review and post the Revaluation Journal, which has been populated with entries from previous steps in this process.

See Also

Tasks

How to: Fill In Revaluation Journals Manually
How to: Fill In the Revaluation Journal with the Batch Job

Reference

Standard Cost Worksheet
Unit Cost

Concepts

About Calculating Standard Cost
Manage Inventory Costs

Other Resources

Costing Methods