Standard cost is a pre‑set, expected cost of a product or item. Businesses use it as a consistent benchmark.
How it works
Standard Cost - Enter the standard cost of this product. This value is used to calculate order margins and is applied in stock transactions for valuation and cost analysis.
A user can change the standard cost when in his role - Actions - Can Revalue Stock is set to Yes.
A user can see the Cost Changes at the product when in his role - Workplace stock Revaluation is set to Yes.
Stock records will always inherit the standard cost from the product master, regardless of when the standard cost is defined.
When a stock record is created, it will automatically inherit the current standard cost from the product
This applies consistently across all depots
Manual cost entry on stock records is no longer required
Existing and newly created stock records will remain aligned with the product’s standard cost
When the standard cost price of a product is changed, this may result in General Ledger (GL) transactions if Create Stock Movement Journals is enabled in the Accounting Integration settings.
Behavior
If stock revaluation is turned on:
Changing the standard cost triggers inventory revaluation transactions
The system posts stock revaluation journal entries to the General Ledger
On‑hand inventory is revalued based on the difference between the old and new standard cost
Revaluation is applied across all depots where stock is held
If stock revaluation is turned off:
No GL transactions are created when the standard cost is changed
The new standard cost is used only for future inventory movements
Existing on‑hand inventory retains its current valuation