About Standard Costing

Standard costing assigns a Standard cost for each item in the Items form. In contrast to the four Actual cost methods, the Standard cost of an item will not change unless you either change it manually or run the Roll Current Cost to Standard Cost utility.

When you have set the parameters and field values to establish Standard costing, each system function that uses the unit cost of an item uses the Standard unit cost. These functions include:

• all inventory reports
• issue of materials to jobs
• transaction posting to the Inventory Ledger Distribution Journal

You can post material costs to jobs using one of the four Actual costing methods by overwriting the Standard Cost Type default at the Item level.