Standard Cost in Axapta
When a new standard cost is activated on an item, the system immediately revalues both inventory and Work in Process (WIP), at the new standard cost. It records the revaluation variances in the process to account for the difference to the prior standard cost.
This is a list of the types of variance available for standard cost:
• Variances to standard cost are captured through different variance types at every stage.• Purchase price variance is captured upon purchase receipt and invoice matching.
• Cost change variances are captured upon transfers and credit notes.
• Revaluation variances are captured upon standard cost change.
• Production variances are captured upon production end. This can be optionally separated between cost, quantity variance, substitution and lot size variance.
Ultimately, items defined by using a standard cost valuation method no longer require the inventory close process to be performed.