Managing Inventory Costs

Cost management, also referred to as “costing”, is concerned with recording and reporting business operating costs. It includes the reporting of manufacturing costs and inventory costs, that is, the value of items.

Central principles to understand are that costing methods define how items are valued when they leave inventory, that cost adjustment updates the cost of goods sold with related purchase costs posted after the sale, and that inventory values must be posted to dedicated G/L accounts at regular intervals.

The following table describes a sequence of tasks, with links to the topics that describe them.

To	See
Read various conceptual information to understand the principles and definitions that govern the inventory costing accounting functionality in Microsoft Dynamics NAV.	About Inventory Costing
Set up inventory periods, costing methods, and rounding methods.	Setting Up Inventory Valuation and Costing
Appreciate or depreciate the value of one or more items in inventory by posting their current, calculated value.	How to: Revalue Inventory
Adjust item costs, either automatically or manually, to forward cost changes from inbound entries to their related outbound entries.	How to: Adjust Item Costs
Use special costing functions for every-day item transactions in the item operations.	Handling Inventory and Manufacturing Costs
Periodically update the standard costs of components, in assembly or production BOMs, and roll the new costs up to the parent item.	How to: Update Standard Costs
Perform period-end control and reporting tasks, such calculate the value of inventory and post costs to the general ledger.	Reporting Costs and Reconciling with the General Ledger
Learn about all mechanisms in the costing system.	Design Details: Inventory Costing

See Also

Finance
Inventory
Sales
Purchasing
Working with Dynamics NAV