Performing Standard Costing with Recurring Journals
Use statistics such as sales units, production units, number of deliveries or customers served to perform standard costing. For example, you might want to calculate cost of sales based on sales units and a standard cost per unit.
To create a formula for standard costing:
1. Define a recurring journal formula using the balance of the appropriate statistical account and a fixed amount for standard cost.
Alternately, you can maintain the standard cost as a statistic in a different account.
2. Each accounting period, adjust the balance of your statistics.
3. Generate your standard cost recurring journal just like any other recurring journal batch.
