Actual costing for manufacturing


a client wants to use actual costing for manufacturing, with average method when cogs is calculated.

I can’t use average method since scrap (material variance) is not registered on average. Which costing method should I use?

Well you should use the method your client needs. Setting costing method is not something that should be decided by a NAV developer. It’s far too important for that. It all depends on what the company makes and may be very different for industry to industry.

But you need to explain your client the constraints and what implementing his requirements would mean for the rest of his inventory.