# Using SKU to calculate standard cost

Hi ,

I am thinking of using SKU to manage standard cost espacially as I want to transfer goods from supplier warehouse to Bounded warehouse.

However as soon as goods are in the bounded warehouse, standard cost should be different. also when i transfer goods from bounded to main warehouse, the standard cost is also different .

So questions:

• what is the best way to manage those different std costs

• My Customer do not want to use Item charges as they found operation too manual. They want to built their std costs base on differents costs charges uch as freight; brokerage charges; over seas costs; duty charges; etc… so how can I built my standard cost knowing those information and knowing that at each warehouse stad costs differs depending on type of charges.

Thanks

Nothing in the system will give you this as standard, there is no standard cost calcualation by warehouse, although you can manually set the standard cost on teh SKU, the ramifications of which I am not aware, generally the standard cost is the standard cost, that is the point, although I see the point of wanting it differently on bonded warehouses. You will also need to build a calculation routine to take the elements you require to build standard costs.

I am ok with that. I will use the SKU to have different std cost per item and built a calculation routine. My customer is aware of that mod.

My question now is : how Navision handle cost when I transfer goods btw warehouses. For exemple, In WH1 , std cost is 10\$, so my item value is 10\$ . Now i create a transfer order from WH1 to WH2 ( where std cost is 11\$) and another transfer from WH2 ( std cost is 12\$) to WH3 ( where std cost is 13\$) , how the cost will affect my GL when posting those transactions?? Thanks

Well the system has no functionality to do this, so you would have to write a stadnard cost adjustment routine I would guess. This is asimple test so try it, but the cost at the source location will be the cost at the destination location. In standard NAV I do not believe they ever would consider an internal transfer as creating a standard cost variance.

YES I know that for internal transfer the cost will be the cost at source location and the destination location. So as I need to tranasfer my goods from INTRANSIT warehouse to BOUNDED warehouse how can i make sure that my cost at BOUNDED is different? OR how this can be handled? any idea??

Hmm are you sure about this. I have set up Navision exactly like this before where a company needss to report differnt costs depending on the location. ANd a transfer creates a financial adjustment as required.

i even had one set up where they had a Returns location set up with \$0.00 cost, so that the item was valued at zero in that location. I am pretty sure it was out of the box, but maybe I make some code cahnges to allow it.

Hi David

Was it a standard costed environment? I just set different standard costs on teh SKU record and it remains the same, no adjustments after adjustment - you can hold average cost by location as standard.

Taty - this would be handled by a modification, unless you can get the standard system to work for you.

You’re right AdamRoue. NAision does not handle that out of the box. I just tested that[:(]. So I have to modify the system to do that.

So my question now: is it something that has been done by someone here on the forum ? if yes any idea to do that as I really does not like the idea of changing NAV posting ? Any suggestion will be appreciated.