STANDARD COSTING

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 GAYAKAVADA PAVAN KALYAN RAO

                                       STANDARD COSTING

 

STANDARD COSTING: Under standard costing, the value of inventory is determined using the material and material overhead standard costs of each inventory item. If you use Bills of Material, Inventory maintains the standard cost by cost element (material, material overhead, resource, outside processing, and overhead).

Now we have to define COSTING

NAV->INV->setup->organization->parameters

Give the Costing Method as Standard

Now Check whether Cost Manger is Active or not

NAV->INV->Setup->Transaction->Interface Managers

To define Standard Cost, we should have Sub-Elements

Ø Overhead

Ø Material Overhead

Ø Material Cost

Ø Resource Cost

Let's define them

Now define SUB ELEMENTS

NAV->NAV->Setup->Costs->Sub-Elements->Material

Now define MATERIAL OVERHEAD

Now define OVERHEAD in the same screen

Ø Standard Cost is not defined directly initially we define it as Pending to make changes 

Ø We take that Pending Cost and Freeze it Once it is Freeze than we can't make changes to it and that is Final Cost

 Now create item

NAV->INV->Item->Master Item

Give the details as shown below 

Now give cost to the Item

NAV->INV->Cost->Item Cost take new

 Enter the item, select cost type as Pending then click on Cost and give the Sub-elements and enter the cost for item

Now we need to run the program called Update Standard Cost. Give the details as shown below.

Here the concurrent program is getting an ERROR

We need to check the ERROR type. Here click on the VIEW LOG tab

Now we need to open the inventory accounting periods

NAV->INV->Accounting Close Cycle->Inventory Accounting Periods

Now we need to click on the CHANGE STATUS tab then click on the OK tab

Now we have to run the update standard cost program

Now the program completed without getting error

Now check the Cost of the item

NAV->INV->Cost->Item Cost

search with the item and click on the FIND tab

Now click on the OPEN tab

Here we can see the standard cost of the item


                                                                                  GAYAKAVADA PAVAN KALYAN RAO





 




 



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