Use Standard Worksheet window to update and roll up standard costs in Business Central

Use Standard Worksheet window to update and roll up standard costs in Business Central

In Microsoft Dynamics BUSINESS CENTRAL, the Standard Worksheet window is a tool used to update and roll up standard costs periodically. This allows companies to adjust their standard costs to reflect changes in pricing, material costs, labor rates, or other cost factors.

To use the Standard Worksheet window, a company would first set up their standard cost information in BUSINESS CENTRAL, including item information, routing information, and cost elements. Then, they would open the Standard Worksheet window and select the items they want to update. The system will then generate a worksheet that shows the current standard cost for each item and allows the user to enter any changes to the cost elements. Once the changes are entered, the user can roll up the new costs, which updates the standard costs for all associated items.

For example, let's say a company produces a product that requires various raw materials and labor to manufacture. The company has set up standard costs for each item and periodically reviews and updates those costs to reflect changes in the market or production processes. Using the Standard Worksheet window, they can generate a worksheet that shows the current standard costs for each raw material and labor item, and make adjustments as necessary. Once the adjustments are complete, the user can roll up the new costs, which updates the standard cost for the finished product. This allows the company to maintain accurate and up-to-date standard costs for their products, which is important for budgeting, pricing, and profitability analysis.

 

Let's say a company manufactures a product called "Widget A" and has set a standard cost for it based on various cost components such as direct materials, direct labor, and overhead.

At the beginning of the year, the company creates a Standard Worksheet in BUSINESS CENTRAL to update and roll up the standard costs for Widget A. The worksheet includes all the cost components for the product, along with the corresponding cost amounts.

During the year, the company incurs changes in costs, such as a price increase for raw materials or an increase in labor costs. To reflect these changes, the company periodically updates the cost components in the Standard Worksheet window and rolls up the new standard cost for Widget A.

For example, let's say the company initially set the standard cost for Widget A at $100. However, halfway through the year, the price of a key raw material used in Widget A increases, resulting in an increase of $5 in the direct materials cost component. The company would update the Standard Worksheet window to reflect the new cost component amount, roll up the standard cost, and see that the new standard cost for Widget A is now $105.

By using the Standard Worksheet window to periodically update and roll up standard costs, the company can have a better understanding of the actual costs associated with producing Widget A and make more informed decisions about pricing, production, and profitability.