same product from two different vendors - costing version /method question AX 2012 R3?

We resell products and procure same product from two different vendors. Which ever one gives a better price, we would go with that vendor based on product/quantity and special pricing/promo that each vendor may have at that time. All of them are shipped direct to end customers. So for an item (for e.g. Guitar Hero Software). We are going to treat the items as stocked. assume generally the purchase cost is $10!

$10 from Vendor A on June 2014

9 from Vendor B on July 2014

$9.5 from Vendor A on Aug 2014.

Note: the purchase cost of an item doesn’t change a lot (unless we order large volume. they don’t provide us upfront volume discount and in some cases we negotiate a better price).

As I look at Std and FIFO, I was thinking of going with std costing.

Question: do we need to set up costing version, cost group, calculation groups (we don’t anticipate BOM but may be in the future)

What would be the better way to inventory track these item from costing perspective. Could we use a standard costing version and capture std purchase cost variance or go with FIFO

we have about approx 30 products that we sell most of the time (customer may order different products that we source from vendors).

If STD costing, Is std costing versions mandatory? what is the benefits?

If FIFO, then we need to run inventory valuation/recal eetc.,

Any suggestions greatly appreciated. Thank you

Any thoughts are very much appreciated. thank you

If you are going standard costing you have to setup a costing version.

There is no need for cost groups or calculation groups if you dont use them.

Advice on the costing version depends in reality what the business wants to see - do they account on variance or would they prefer a truer reflection of cost. Non-moving costs means you could go standard, this is traditional in many manufacturing sectors, not so much in retail. However it is the choice of the business, what they want to see and how the FD thinks about the costs.

Talk to your customer and discuss what costing needs. Standard or FIFO is an accounting principle, it is not to do with software, AX reflects it, but it is the principle that is important to the customer.

its related resale. no bom at the moment. would like to capture PPV (though the purchase price wouldn’t change over 6 months but sometimes on certain products yes).

but FIFO would require lot of maintenance from Ax perspective for e.g. inventory recalculation end of every month etc.,

Is it a lot of maintenance to periodically run a batch routine, or to create a costing version. Either way the maintenance is irrelevent, it is the required costing method that is important, then you resource the work to get what you want!