Costing Method Change PLUS (CMC)
Costing Method Change PLUS (CMC) enables you to change costing methods subsequently while still maintaining the cost data in the item entries and historic item data.
The costing method is of key importance for calculating the inventory value of a company. Different methods can result in widely differing costs and inventory values even if the same data basis is used. Normally, the costing method of an item is firmly defined in the item and value entries once item movements are posted. However, in some situations it may become necessary to change the costing method of an item.
Three frequent cases:
- User error: user selects the wrong costing method by mistake when setting up an item.
- Legal reasons: if you want to achieve conformity with the International Accounting Standards (IAS), it may be required to change your costing method. For example, the IAS does not permit the use of the LIFO costing method so that companies may be forced to change the selected costing method.
- Change in procurement: your company plans to buy an item externally that used to be manufactured in-house by your company (e. g. by using the Standard costing method). This can lead to the fact that you need to change the costing method to a method which is more suitable for purchases.
CMC is directly developed in Microsoft Dynamics NAV which enables you to determine the costing methods of your items in a flexible and easy manner after initial setup.