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Important
Some of the functionality described in this release plan has not been released. Delivery timelines may change and projected functionality may not be released (see Microsoft policy). Learn more: What's new and planned
| Enabled for | Public preview | General availability |
|---|---|---|
| Users by admins, makers, or analysts | - | Apr 2025 |
Business value
The standard costs for produced items with specific variants or locations are accurately derived from stockkeeping units (SKUs). This improvement makes cost more precise when production bills of material (BOMs) and routes are assigned to SKUs. You can also include non-inventory items in production cost calculations, which gives you a more comprehensive view of cost shares.
Feature details
Include non-inventory costs in finished goods
This release allows non-inventory items to be included in the cost of produced items in both actual and standard cost scenarios.
Setup
To start using this feature, go to the Manufacturing Setup page and turn on the Include Non-Inventory Items to Produced Items toggle.
Afterward, the cost of non-inventory items is included in the cost of produced items as an additional value entry related to item ledger entry of the type Output. You must also configure the corresponding balancing accounts.
The following table shows the relationship between the new types of inventory value entries, and the accounts and balancing accounts in the general ledger.
| Item Ledger Entry Type | Value Entry Type | Variance Type | Expected Cost | Account | Balancing Account | Comment |
|---|---|---|---|---|---|---|
| (Production) Output | Direct Cost - Non Inventory | No | Inventory | Direct Cost Non-Inventory Applied Account | Similar to item indirect cost | |
| (Production) Output | Variance | Capacity Overhead | No | Inventory | Material Non-Inventory Variance Account | Similar to other variance accounts |
Use
You can explore the expected effect of non-inventory items on the cost of produced items on the BOM Cost Shares page, where the Rolled-up Material Non-Inventory Cost and Single-level Material Non-Inventory Cost fields are available.
After you post, you can find the amounts in the value entries and general ledger entries.
Note
These change don't affect assembly orders: the non-inventory items can be consumed but without impacting the cost of the assembled item.
Use standard cost from SKUs for production output
You can define production BOM or routing in the SKU, which can be useful if the SKU represents a different variant, which requires a different set of components or different location where different production equipment is available. These changes might impact cost.
Setup
To activate this feature, navigate to the Manufacturing Setup page and enable the Load SKU Cost on Manufacturing toggle.
Usage
You can now use the Calc. Production Std. Cost action in the Stockkeeping Unit Card page to calculate standard cost.
That action will populate new fields:
- Single-level Material Cost
- Single-level Capacity Cost
- Single-level Material Non-Inventory Cost
- Single-level Subcontracted Cost
- Single-level Manufacturing Overhead Cost
- Single-level Capacity Overhead Cost
- Rolled-up Material Cost
- Rolled-up Capacity Cost
- Rolled-up Material Non-Inventory Cost
- Rolled-up Subcontracted Cost
- Rolled-up Manufacturing Overhead Cost
- Rolled-up Capacity Overhead Cost
Note
- For subassemblies, the system uses information from item cards.
- Standard cost worksheet doesn't support stockkeeping units.
When you post the output for an item that has a stockkeeping unit, the standard cost will be defined based on information from the stockkeeping unit.
Tell us what you think
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