Recommended Steps for Implementing Items with the Standard Costing Method

When implementing the Standard Costing Method for your items, it’s important to follow these steps to ensure accurate cost management and system setup:

• Initialize Standard Base Cost for All Items

  • Use the Import Item Template to import all items and initialize the Standard Base Cost for all items.

• Import Item Formulas

  • Import the Item Formulas for manufactured items or any items requiring a formula.

• Import Item Routings

  • Import the Item Routings for items that involve production processes.

• Verify Key Field Values

  • Before proceeding, ensure that the following fields are set up correctly for each item:

    • Replenishment System:

      • Set to Work Order for items with Item Formulas.

      • Set to Purchase for other purchased items.

    • Standard Base Cost:

      • Ensure this is entered for all purchase and service items.

    • Inventory Class:

      • Enter Finished Goods, Subassembly, or Raw Materials as applicable.

      • You can also use Finished Goods for service items if needed.

• Run the Item Calculate Low-Level Code

  • Execute the Item Calculate Low-Level Code to ensure that item structures are calculated correctly for multi-level bills of materials.

• Process the Standard Cost Worksheet for Work Order Items

  • Use the Standard Cost Worksheet to update the standard cost for all Work Order items by rolling up formula and routing costs.

• Import Beginning Inventory

  • Import the Beginning Inventory and compare the inventory value in GoldFinch with the import spreadsheet provided by the client.

    • The value may be slightly different, but it should be close to the original figures.

• Import or Enter Opening Transactions

  • Import or manually enter the following open transactions:

    • Sales Orders

    • Purchase Orders

    • Work Orders

By following these steps, you'll ensure that your items are properly configured with accurate standard costs and that the system is ready for use with consistent and reliable data.

Article Recommended-Steps-for-Implementing-Items-with-the-Standard-Costing-Method  ·  Last updated September 29, 2025 · GoldFinch ERP Help Center