Using Standard Costs on an SKU (Stockkeeping Unit)

Using Standard Costs on an SKU (Stockkeeping Unit)

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Currently, the standard cost is only SKU specific for purchased Items. In order to calculate manufacturing variances it is necessary to have the following fields, which are only present on the Item Card: Single-Level Material Cost, Single-Level Capacity Cost, Single-Level Subcontrd. Cost, Single-Level Cap. Ovhd Cost, Single-Level Mfg. Ovhd Cost.

In order to handle a situation where there are different production costs per SKU, an option to define BOM and routing details by SKU would be required and this is not currently available.

Please see the following potential workarounds for this situation:

  1. An Item in combination with a Variant and/or Location, which carries a specific Standard Cost could be created as a unique item on an Item Card.
  2. If the user only consumes materials in the manufacturing process, a customization could be created to use the Standard Cost on the Stockkeeping unit record. Please note: a possible drawback to this approach, is that only one Variance G/L account is available per Item and Location combination. Variance per Item Variant could not be posted and traced to a separate G/L account without further customizations.
  3. If additional cost elements are used in the calculation of the final cost of a produced item, the fields that are currently only present on the Item Card (Single-Level Material Cost, Single-Level Capacity Cost, Single-Level Subcontrd. Cost, Single-Level Cap. Ovhd Cost, Single-Level Mfg. Ovhd Cost.), should be implemented on the SKU card and maintained in the same way as on the Item Card.
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  • Hello, I was wondering why #2 says "Only consumes materials int he manufacturing process"? As in, doesn't create any output? I am currently testing and working with development on creating a solution by modifying the Adjust Cost Item Entries routine, which seemed to be the only possible area to get SKU Standard Cost on Output when expected is moved to actual. If you have any other input or references to this being done by someone else it would be great to see. Thanks for this post!

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