Costing Versions

The Costing versions configuration page within the Cost Management module is the architectural foundation for establishing, managing, and simulating inventory and manufacturing costs. It provides a structured mechanism to group related item prices and cost calculation parameters.

This design ensures strict temporal control over inventory valuation and clear segregation between active standard costs and simulated budgets.

Accessing Costing Versions

Navigate to Cost management > Costing versions.

The primary interface displays a list of all established versions. Each version acts as a distinct container for price records.

• Costing Type: Classifies the intent of the version. The system supports two primary paradigms:
  • Standard: Utilized for standard cost accounting methodologies. Active prices within a standard version immediately dictate inventory valuation and variance postings.
  • Planned: Utilized for simulation, budgeting, and "what-if" analyses. Planned versions do not directly impact current inventory valuation.
• Version: The unique alphanumeric identifier (e.g., V-0, STD-2025).
• Last Activation: The chronological timestamp of when the Costing Version itself was formally activated. A Costing Version must be active before any of its constituent prices can be utilized by the system for valuation or calculation.

Managing Item Prices

To define the specific financial values for your inventory items, select a Costing version and click the Item prices button on the action toolbar. This opens a dedicated workspace specific to the selected version.

Pending vs. Active Prices

Crucially, the activation state of individual item prices is distinct from the overall version. Even within an active Costing Version, newly added item prices are instantiated in a pending state. The workspace is strictly bifurcated into two tabs to enforce this accounting integrity:

1. Pending prices: This tab functions as your draft workbench. Here you create, modify, and review proposed costs. Changes here have zero impact on live financial ledgers, as these prices will not be used by the system unless activated.
   • To finalize and apply these costs, you must explicitly Activate them.
2. Active prices: This tab is an immutable, read-only historical ledger. It displays all prices that have been formally activated within this version. These are the explicit values currently governing inventory transaction valuation.

Defining a Price Record

When adding a record within the Pending prices tab, you must define the following parameters:

• Price Type: Determines the financial context of the value.
  • Cost price: The baseline financial value for inventory valuation.
  • Purchase price: The default expected procurement cost from vendors.
  • Sales price: The default revenue value for customer invoicing.
  • Calculated cost: A system-generated cost derived from Bill of Materials (BOM) and routing calculations (primarily utilized in manufacturing).
• Item Number: The specific inventory SKU.
• Site: (Optional) Allows you to establish site-specific pricing. If left blank, the price applies globally across the legal entity.
• Price: The monetary value per defined unit.
• Price Quantity: Establishes the lot size for the price (e.g., a price of $20.00 for a quantity of 10 means the cost per single unit is $2.00).
• Unit: The unit of measure (e.g., pcs).
• From Date: The chronological starting point for when this price should become effective upon activation.

Activation Impact

Activating a pending Standard cost price immediately revalues existing on-hand inventory. The system will automatically generate a ledger posting to account for the valuation delta between the old and new standard cost. Ensure all pending prices are thoroughly audited prior to activation.