Choosing the appropriate costing method is a key factor in successfully managing costing information. Each costing method has different peculiarities inherent to the costing method. We are not speaking of peculiarities in Dynamics Business Central but of the costing method itself. The important part is that once you have selected a costing method for an Inventory Item, and have posted the first transaction, it is not easy to change the costing method.
It is worth the effort to make sure you start out on the right foot when deciding on costing methods.
Costing Method choices
Your choices of costing methods are
- No costing
- Weighted Average costing
- Standard Costing
- Specific (only if you work with serialized inventory)
- LIFO (Not acceptable in most accounting environments).