Standard costing for receipt postings in manufacturing

A production order's end item is received in inventory against the standard cost if one of the following is true:

• The end item's valuation method defined in the Item Data by Warehouse (whwmd2510m000) session is Standard Cost.
• The End Item Receipt Posting check box in the Production Order Parameters (tisfc0100s000) session is not selected.

If Standard Cost is used for a production order, the End Item Receipt Posting check box in the Production Order Parameters (tisfc0100s000) session is cleared. The end item's receipt price is a fixed one: the standard cost of the end item.

Warehousing always maintains the MAUC price for each item - warehouse combination. If the valuation method is Standard Cost, the MAUC price is maintained for informational purposes only. LN updates the MAUC price by using the receipt price (standard or actual cost) during the receipt process.

During closing of the production order, the variances are calculated, copied to Warehousing, and displayed in the Inventory Variances (whina1516m000) session. You can run the Process Inventory Variances (whina1200m000) session to update the MAUC price using the inventory variances.