Why Business Central Delays Cost Roll-Up Until Production Order Completion

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Jun Wang

8,130 Super User 2025 Season 2

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Why Business Central Delays Cost Roll-Up Until Production Order Completion

Business Central's manufacturing module follows a "completed cost" accounting model rather than a progressive cost accumulation approach. Here's why the system behaves this way:

Technical Reasons for the Behavior

1. Cost Accuracy Requirements
- The system waits until all potential costs are known before assigning final costs to items
- This prevents:
- Multiple cost recalculations as consumption changes
- Temporary cost distortions from partial information
- Complex reversals if production quantities change

2. Inventory Valuation Integrity
- BC maintains strict inventory valuation rules that require:
- All components to be definitively consumed
- Final output quantities to be confirmed
- All subcontractor charges to be recorded

3. Production Order Lifecycle Logic
- The "Finished" status serves as a financial cutoff point triggering:
- Final cost calculations
- Inventory revaluation
- Ledger integration