Standard Cost Update

The standard cost update procedure enables you to define and roll up pending costs, simulate changes to standard costs for "what if" analysis, and then update pending costs to the Frozen standard cost type.

If possible, run your cost update at the beginning of your inventory accounting period before transactions have started for the new period.


To update standard costs:1. Define a cost type for pending standard costs.2. Define pending costs for each of the cost elements: material (inventory items, both components and assemblies), material overhead, resources, overhead, and outside processing.If you have changed your activity rates, and base material overhead on these activity rates, you need to run the activity mass edit to recalculate the activity based material overhead.You can also define pending rates for resources and overhead.3. Roll up pending costs. This adds up pending costs for all cost elements of an assembly and creates a new pending cost for the assembly.4. Print and review preliminary adjustment reports to see potential changes to the frozen standard costs.5. Update pending costs to frozen standard costs.6. Optionally, print new standard cost reports.