IC item valudation report acutal cost not equal to standard cost

[SophiaSun]

Our accpac version is 5.2.
When I print the item valuation report. I find the standard cost dosen't equal to actual cost. Sometimes the G/L inventory account balance equal to the actual cost and sometimes equal to standard cost. I want to know which is correct?

 

[jayconverse]

It depends on how you define "correct". The G/L is normally going to equal the actual cost. Standard cost is just a number you make up, and it needs to be periodically adjusted. That's why cost accountants have jobs...

Jay Converse
IT Director
Systemlink, Inc.

 

[SophiaSun]

But I find the acutal cost in the item revaluation is not correct in Sep,2006. The standard cost of Sep,2006 is correct. And the G/L inventory balance equal to standard cost of item revaluation report. I don't know what's the reason.

 

[jayconverse]

You have to roll up your sleeves, put on your green eye-shades, and look at the transaction details in both I/C and G/L. Again, that's why cost accountants have jobs.

Jay Converse
IT Director
Systemlink, Inc.

 

[ettienne]

Actual cost is the number you should be looking at for inventory valuation and comparing to the GL. Forget about standard cost in this case.