Why Business Central Delays Cost Roll-Up Until Production Order Completion

 

 

 Why Business Central Delays Cost Roll-Up Until Production Order Completion

 

Business Central's manufacturing module follows a "completed cost" accounting model rather than a progressive cost accumulation approach. Here's why the system behaves this way:

 

 Technical Reasons for the Behavior

 

 1. Cost Accuracy Requirements

- The system waits until all potential costs are known before assigning final costs to items

- This prevents:

  - Multiple cost recalculations as consumption changes

  - Temporary cost distortions from partial information

  - Complex reversals if production quantities change

 

 2. Inventory Valuation Integrity

- BC maintains strict inventory valuation rules that require:

  - All components to be definitively consumed

  - Final output quantities to be confirmed

  - All subcontractor charges to be recorded

 

 3. Production Order Lifecycle Logic

- The "Finished" status serves as a financial cutoff point triggering:

  - Final cost calculations

  - Inventory revaluation

  - Ledger integration

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