What is the difference between current cost and standard cost of a product?
A product/service record in FieldOne Sky has two fields for cost: Current Cost and Standard Cost. Both of these fields can be utilized when creating price lists.
What is the difference?
At its simplest, Current Cost is the actual cost of the product whereas Standard Cost is an average over time.
A little more detail:
Current Cost = The last cost that was used to record an increase in inventory quantity. This could be through an adjustment, receipt or variance, but not a return. If you are using the Average Perpetual inventory costing method, then the current cost is calculated as the average cost.
Standard Cost = This is a cost that YOU enter. The only way this cost changes is if you open up the product and change it, or use the year-end close routine to update all of the standard cost items to equal their current cost.
Article ID: 3132223 - Last Review: 01/13/2016 05:56:00 - Revision: 1.0