Q
You use Dynamics 365 supply Chain Management.
You have an item that uses a Standard cost inventory model.
You run the Inventory Valuation report and discover that the item is being valued at a cost that differs from what you expected.
You need to ensure that the item cost is configured correctly.
What should you do?
Question Info
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Explanation
The correct solution is to set the item cost record to Active, because in the Standard cost model, only active cost records are applied in valuation and reporting. Pending costs can be entered and reviewed but do not affect inventory valuation until they are activated. Costs are maintained at the item level in the costing version, not directly on the released product record, so configuring them at the released product level does not change valuation. Therefore, ensuring the cost record is Active at the item level is required for the Inventory Valuation report to reflect the correct standard cost.
Prerequisites for standard costs - Training | Microsoft Learn
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