title | description | author | ms.topic | ms.search.keywords | ms.date | ms.author | ms.service |
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Set Up Inventory Valuation and Costing |
To make sure that inventory costs are recorded correctly, you must set up various fields and pages before you begin to make item transactions. |
brentholtorf |
conceptual |
06/16/2021 |
bholtorf |
dynamics-365-business-central |
To make sure that inventory costs are recorded correctly, you must set up various fields and pages before you begin to make item transactions. Typically, businesses choose a specific costing method and apply that to inventory items, for example, to help them track the value of items on stock.
Tip
For an introduction to costing in [!INCLUDE prod_short], see About Inventory Costing.
The following table describes a sequence of tasks, with links to the topics that describe them.
To | See |
---|---|
Specify a default costing method for the company to govern how incoming cost is used to assess inventory value and the cost of goods sold. | Set Up General Inventory Information |
Specify a costing method on individual items if they require a different costing method. | Register New Items |
Ensure that the cost is automatically posted to the general ledger whenever an inventory transaction is posted. | Automatic Cost Posting field on the Inventory Setup page |
Ensure that expected costs are posted to the general ledger to see from the interim G/L accounts an estimate of the amounts due and the cost of the traded items before they are actually invoiced. | Expected Cost Posting to G/L field on the Inventory Setup page |
Set the system up to adjust for any cost changes automatically every time you post inventory transactions. | Adjust Item Costs |
Define if the average cost is to be calculated per item only or per item for each stockkeeping unit and for each variant of the item. | Average Cost Calc. Type field on the Inventory Setup page |
Select the period of time you would like application to use for calculating the weighted average cost of items that use the average costing method. | Average Cost Period field on the Inventory Setup page |
Define inventory periods to control inventory value over time by disallowing transaction posting in closed inventory periods. | Work with Inventory Periods |
Ensure that sales returns are applied to the original outbound transaction to preserve inventory value. | Exact Cost Reversing Mandatory field on the Sales & Receivables page |
Ensure that purchase returns are applied to the original inbound transaction to preserve inventory value. | Exact Cost Reversing Mandatory field on the Purchases & Payables page |
Set up the rounding rules to apply when adjusting or suggesting item prices and when adjusting or suggesting standard costs. | Rounding Method page |
Managing Inventory Costs
Set Up General Inventory Information
Reconcile Inventory Costs with the General Ledger
Setup Best Practices: Costing Method
Design Details: Inventory Costing
Design Details: Change the Costing Method for Items
Work with Business Central
Finance
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