Microsoft Dynamics 365 Business Central: How to change the Costing Method

Reasons for changes

There are many reasons for changing the stock issue method. These include, for example

• Mistakes
  In retrospect, the method turns out to be unfavourable or the wrong method was chosen by mistake.
• Internationalisation
  The company has decided to adopt a new accounting system in accordance with IAS International Accounting Standards – or feels compelled to do so.
• Audit
  After an intervention by the auditor, the retirement method must be adjusted and changed.
• Procurement
  In future, goods that have been purchased for a long time will be produced in-house or vice versa – in other words, a classic switch from in-house to external production. Either way, the current stock issue method must be changed – and this may have to be done several times.
• Fluctuations on the procurement market
  Procurement prices have been stable for years, but this has changed. The stock disposal method is to be adjusted accordingly.

Proposal Microsoft Dynamics 365 Business Central

Changing the warehouse issue method is not part of the standard functionality of Microsoft Dynamics 365 Business Central and is therefore not possible. The recommendation is to create a new item.

If you decide to use this method, please note:

• High manual effort
  Creating a new article means removing the old article, creating a new article as a new version, posting the stock again and, above all, changing it again as a component in all parts lists.
• Consistency in the ongoing changeover process
  During the changeover and internal coordination, business continues. Goods are procured and posted in the system. Find a rule for when new arrivals are posted to the new article number and ensure that everyone involved is informed.
• Ability to provide information in the tax audit
  When a new article is created, the documentation of the article history is lost – an information gap that can lead to unpleasant queries in the tax audit. Reconciliation and traceability are difficult.

In addition, items are usually provided with a whole range of additional information (supplier information, batch sizes, cost factors, etc.). These have already been created once – and must be added again for a new item and also have an influence on linked BOM items and levels.

Proposal CKL Software

Costing Method 365 is an app for Microsoft Dynamics 365 Business Central. With the app from CKL Software, you can change the inventory issue method and valuation basis of an existing item, even though postings already exist for this item. The advantages are

• Flexibility
  You can customise the method for each item individually and multiple times.
• Transparency
  The item history is retained and your changes remain traceable. This improves your ability to provide information during tax audits.
• Consistency:
  The error rate is reduced, as a manual change process can always be subject to errors.

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