Calculating Production Costs at SKU Level in Business Central

Applies to Product - Dynamics 365 Business Central

What’s happening?
The customer is seeking guidance on how to calculate production costs at the SKU level, as they have items and SKUs set up with different production BOM and routing details. They are specifically looking for reports or functions that can provide unit costs for a SKU's production BOM.

Response:
In Business Central, the unit cost roll-up and the related calculation of cost shares are not available on SKUs. Although production BOMs and routings can be assigned to SKUs, the unit cost roll-up is only available at the item level.

More Information:

• The standard cost field on the item card is used when invoicing and adjusting the actual cost of the produced item.
• Variances are calculated against the cost shares of the item.
• For further information, refer to the following resources: