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Standard costing by location

  • 1.  Standard costing by location

    Posted 11 days ago
    We have a small basic manufacturing operation that is ideal for standard costing and not conducive to other costing options. We also ship our manufactured product to multiple locations to be sold out of. Is there a way to set a different standard cost for each location?

    IE: Location 1 - manufacturing plant has a standard cost of $100/unit
    Location 2 - distribution point, incurs trucking costs of $50/unit to get here, total landed cost is then $150

    I'd prefer to keep the item numbers the same if possible.

    Any help is appreciated.

    Thank you,

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    Darren Mitchell
    Wayfinder Corp
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  • 2.  RE: Standard costing by location

    Posted 11 days ago
    Darren

    Have you thought about using "Stock keeping Units" to separate the inventory and apply different costs?

    It's driven by locations:



    Good Luck!


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    Alfredo Zelaya
    Sr. Systems Analyst
    Megadyne Americas LLC
    Fairfield NJ
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  • 3.  RE: Standard costing by location

    Posted 11 days ago
    Hi Darren,

    You can only have 1 Standard Cost per Item.  You can increase the standard cost by adding an Indirect Cost to the Item Card but it's still just 1 Standard Cost per Item, especially since they don't want to make new Item Numbers.  This would require a modification from your VAR.



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    Matthew Cullen
    Technology Management Concepts
    El Segundo, CA 90245
    mcullen@tmc-la.com
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  • 4.  RE: Standard costing by location

    GOLD CONTRIBUTOR
    Posted 10 days ago
    SKUs will not help here. You can still only have one standard cost per item. Having a standard cost per item per location is a very large customization.

    In your case it sounds like this would be fine though. Location 1 is the standard for $100, and it sounds like location 2 is also $100, but with $50 of freight added. Item Charge the freight for Location 2.The $50 becomes a variance.

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    Kyle Hardin
    NAV Developer
    ArcherPoint Inc.
    Duluth GA
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  • 5.  RE: Standard costing by location

    Posted 10 days ago
    I might have done something wrong, but by using the stock-keeping units I was able to generate two different standard costs for the same item, based on different locations. I will make sure to provide an update if I come across any issues in the future.

    Thank you all for the suggestions and help!

    ------------------------------
    Darren Mitchell
    Wayfinder Corp
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  • 6.  RE: Standard costing by location

    TOP CONTRIBUTOR
    Posted 10 days ago
    I always thought that it was possible using stockkeeping units.

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    Lewis Rosenberg
    IT Manager
    Mars Fishcare
    Chalfont PA
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  • 7.  RE: Standard costing by location

    Posted 10 days ago
    Darren

    That's the expected result.

    ------------------------------
    Alfredo Zelaya
    Sr. Systems Analyst
    Megadyne Americas LLC
    Fairfield NJ
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