Hello everyone,
Our company uses the costing method as STD cost. And when there is a difference between the actual purchase cost and the STD cost, the cost is adjusted through PPV.
However, all inventory reports in inventory management simply indicate the inventory value as “quantity times STD”. I don’t think this is an exact inventory value.
Is there any menu where I can see the exact inventory value considering PPV?
You would have to switch to Average Costing. This is how standard costs works. It simplifies the movement of inventory value at the expense of precision.
Agree. System is working as designed. You would have to change costing methods.
Does the last cost field get updated when using standard cost.
Yes, average and last will calculate and you will see it in part tracker, but the value for inventory is based off the Std cost (or whatever costing method is attached to the part.
From what I’ve heard, the only way is to change the costing method to Average Costing.
However, I don’t think we can do that because our company’s policy is standard cost.
You can modify the report to use last cost. That will give you the value at the last cost. Please note that this will not reconcile with the GL, but it will only be for information purposes.