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Open the Inventory Parameters form.
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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.
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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.
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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.
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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.