Advanced Costing

When users purchase an item, they may incur additional costs such as shipping, customs clearance, and insurance. These costs can be directly booked in users` accounting system, but this can inflate their inventory value, which may not accurately reflect the true cost of the goods. Additionally, users may want to consider upcoming end-of-year volume discounts when calculating their margins and sales prices. These discounts can impact the real cost of the goods, but standard Business Central does not offer a way to handle this.

Advanced Costing functionality helps users calculate the true cost of an item, including all additional costs such as shipping, customs clearance, insurance, and volume discounts. This allows users to make more informed decisions about pricing and inventory management.

With Advanced Costing functionality users can:

• Set up additional costs/reductions per item or item category
• Calculate the true cost of the items, including all additional costs such as shipping, customs clearance, insurance, and volume discounts
• Get more accurate margins and sales prices by accounting for all additional costs
• Improve profitability by factoring in upcoming end-of-year discounts when calculating the margins
• Get a real-time view of the margins for informed pricing and inventory management decisions