Standard Costing Setup

Open the Inventory Parameters form.
In the Cost Type check box, select Standard.

This selection indicates that all inventory reports and transaction posting to the G/L are to use the item's standard cost. This field is also maintained on the Items form, the Cost Type field of which defaults from the Cost Type field of the Inventory Parameters form when adding new items.
On the Items form, General tab, for all items, select the Cost Method. For standard costing, the Cost Method field on the Items form is used only to determine what material cost to post to a job to which the item is issued.
Determine the standard cost of each item.
Because the Standard Unit Cost field cannot be updated, the standard cost must be established in a different way.
- For purchased parts: On the Item Costs form, the Cost Maint tab, Purchased Current Unit Cost group box, specify the standard cost into the Material field. The Roll Current Unit Cost to Standard Cost utility rolls the purchased current cost to the standard cost when you save the form.
Specify the required General Ledger account numbers in Product Code, Parameter Defaults, Department, and Distribution Accounts files. These account numbers are used for posting inventory transactions to the G/L inventory distribution journal. The account numbers to enter for costing purposes in the codes and parameters are as described below.

After the completion of these steps, you are ready to start processing transactions.