Revalue Standard Cost Inventory and Backdate
When you revalue standard cost inventory and include a backdate, this triggers a cost recalculation that runs for an extended period. Note that costing calculations for assembly item components run slower for any transactions that include them, and all affected transactions must be re-calculated.
If a standard cost is changed for an item, all assemblies that include that item as a component must have costs recalculated. This includes any upper-level assemblies. Cost recalculations can take a long time if the component item is used across many sub-assemblies, and is deep in the Bill of Materials structure.
Best Practices
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When you revalue standard cost inventory with current or future dates, do not back date.
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If an item is a component of an assembly, the revaluation will take longer than a non-component item. Consider this to provide enough time for your month-end close.
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Consider a Cost of Goods Sold general ledger journal entry to make an adjustment instead of revaluing standard cost inventory.
Note:If you use this method, verify that financial reports and inventory reports are both accurate since inventory reports do not reflect journal entries.
For more information, see Revalue Standard Cost Inventory.