About Standard Costing

Standard costing assigns a Standard cost for each item in the Items form. In contrast to the four Actual cost methods, the Standard cost of an item does not change unless you either change it manually or run the Roll Current Cost to Standard Cost utility.

When you have set the parameters and field values to establish Standard costing, each system function that uses the unit cost of an item uses the Standard unit cost. These functions include:

All inventory reports
Issue of materials to SROs
Transaction posting to the Inventory Ledger Distribution Journal

Product Codes - WIP Tab

WIP Material

WIP Labor

WIP Fixed Overhead

WIP Variable Overhead

WIP Outside Services

Product Codes - Ovhd Var Tab

Only one account is needed for each of these:

Fixed Material Overhead Applied

Variable Material Overhead Applied

Fixed Labor Ovhd Usage

Variable Labor Overhead Usage

Fixed Material Overhead Usage

Variable Material Overhead Usage

Fixed Machine Overhead Usage

Variable Machine Overhead Usage

Note: The Fixed Material Overhead Applied and the Variable Material Overhead Applied accounts are required only when basing overhead on job material issues.

Product Codes - Misc Tab

Cost Budget

Product Code - Variance

Purchase Cost

Material Usage

Labor Rate

Labor Usage

Routing

Department

Fixed Overhead Applied Account

Variable Overhead Applied Account

Direct Labor Applied Account

Distribution Accounts - Sales/Cost of Goods Sold

COGS Material

COGS Labor

COGS Fovhd

COGS Vovhd

COGS Outside Services