1. SCM (Supply Chain Management)
  2. Item Record Management
  3. Item Costing
  4. Standard Costing
  5. Defining Cost Versions

Defining Cost Versions

After you create cost category records and set up item records for standard costing, you must create standard cost version records for your items.

A standard cost version is a label to identify a time period or other identifying characteristic that you use to identify costs for items. Having various cost version records allow you to record the cost you expect to incur for an item at a particular time.

Knowing the expense you expect to pay for an item helps you to track cost variations. It gives you a point of comparison after you have a cost or bill for an item. For example, you record that you expect to pay $5 each for Item A this month. Later you get a vendor bill for Item A at $8 each. You know that your costs for that month are higher than you anticipated.

Creating standard cost version records helps you track these variances. Each cost version stores a standard cost to be used on different occasions. You can use multiple cost versions per item to track expected costs over time.

For example, if the cost of an item is expected to change each quarter, you can create a cost version for each quarter:

When you have a cost version for each quarter, you can track the specific expected cost for each quarter.

Cost versions are not limited to being based on quarters or time periods, they can identify any specifying information that you choose.

To define a cost version:

  1. Go to Lists > Accounting > Standard Cost Versions > New.

  2. Enter a name for this cost version. For example, enter Q1 2021.

    Note:

    If you use NetSuite OneWorld, the cost version name must be unique per subsidiary. For example, Subsidiary US has a cost version named Version 1 US Q1 2021. The Subsidiary UK has a cost version named Version 1 UK Q1 2021.

  3. In the Location field, select one or more locations that this costing version is applicable to.

  4. In the Inventory Standard Cost field, select one of the following to define how the standard cost of inventory items is automatically calculated:

    • Average Cost – The average cost of the inventory

    • Item Default – The cost set in the Standard Cost field on the Inventory subtab on the item record. NetSuite generates planned standard cost records based on this field.

    • Last Purchase Price – The calculated last purchase price. For more information, see Sales and Shipping Information for Items.

  5. Click Save.

After you create cost version records, you can set up a planned standard cost record for your cost versions. The planned standard cost is the record you use to specify the expected standard cost related to each cost version. For more information, see Entering Planned Standard Cost Records.

Related Topics

Standard Costing Workflow
Standard Costing Example
Enabling Standard Costing
Creating Cost Categories
Creating Inventory Cost Templates
Setting Up Item Records for Standard Costing
Standard Cost Rollup
Revalue Standard Cost Inventory
Standard Costing and Transactions
Assembly Build Production Cost Variances
Standard Costing FAQ
Standard Costing Reporting
Standard Costing

General Notices