Dynamics Community Forum Thread Details

Rounding of calculated standard cost

Hi there,

We use Standard Cost as our inventory costing method for finished goods.

We have 2 sites: one where we manufacture, and one from which we distribute.

We maintain formula and route in the manufacturing site.

We use a Costing Version to calculate and activate the standard cost.

The standard cost is displayed with 2 decimal places.

We use the out of the box copying function to copy the STD cost to the distribution site, and activate the cost there two.

Again, the standard cost is displayed with 2 decimal points and looks identical to the standard cost in the manufacturing site.

HOWEVER, we discovered that in the site where we calculated the cost the system internally keeps the standard cost with 10 decimal places.

if we adjust into inventory a large quantity of an item, we discover that the value of the inventory in the manufacturing site is DIFFERENT from the same quantity of the item

For example:

say the calculated STD cost is displayed as $1.23

100,000 units of the item in site A, manufacturing site - the value we can see on the inventory transaction is $123,058 - pointing to the fact the system kept the STD cost as 1.23058 and not just 1.23. Looking directly at the tables involved confirs that.

while 100,000 units of the same item in site B, the distribution site, the value is per the "visible" STD cost: $123,000

We had a developer look at the code of activating standard cost in the Costing Version.

We found out that if the pending cost is not "calculated" the system round it to 2 decimal places upon activation. however if the pending cost is calculated, the system DOES NOT round it.

Naturally this makes our accountants not happy.

Does anyone know why would the system only round the non-calculated cost?

How risky will it be if we also force activated calculated cost to be rounded?

Categories:

Dynamics 365 Supply Chain Management

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