How to Update Standard Cost in Business Central Using Configuration Package

In Microsoft Dynamics 365 Business Central, a Configuration Package is a tool used to import, export, and maintain master data in a structured and repeatable way. It allows users to define tables and fields, extract existing data to Excel, modify it offline, and upload the updated data back into the system with built-in validation. Configuration Packages are commonly used during data migration, bulk updates, and periodic master data maintenance.

Maintaining accurate standard costs is critical for reliable inventory valuation, cost rollups, and financial reporting in Microsoft Dynamics 365 Business Central. When standard costs need to be updated for multiple items, doing it manually can be time-consuming and error prone.

In Microsoft Dynamics 365 Business Central, standard costs for items are typically updated using the following methods:

• For newly created purchased items, the standard cost can be entered directly on the Item Card.
• For purchased items that already have item ledger entries, the Revaluation Journal is used to adjust and revalue the existing costs.
• For manufactured items, standard costs are calculated and updated using the Standard Cost Worksheet.

The Standard Cost field is stored in the Item Table and is used when the Costing Method is set to “Standard.” Any modification to this field affects future cost calculations, production order estimates, and cost rollups.

For organizations planning bulk cost updates or cost rollup optimization, working with experienced Business Central consultants ensures compliance and financial accuracy. Learn more about our Business Central consulting services.

This guide explains how to update Standard Cost in Microsoft Dynamics 365 Business Central using Configuration Packages, including costing method considerations, impact on inventory valuation, and financial reporting implications. It is specifically applicable when the Costing Method is set to Standard in the Item Card.

Configuration Packages can be used to perform bulk Standard Cost updates when:

• Multiple items require cost changes simultaneously
• The update is part of master data maintenance
• The system is in a controlled state (no open inventory transactions)
• The Costing Method is set to Standard

However, updating Standard Cost using Configuration Packages does not automatically revalue existing inventory. If Item Ledger Entries already exist, the Revaluation Journal or Standard Cost Worksheet should be used to ensure accurate financial impact.

This method is best suited for controlled bulk updates rather than operational cost adjustments during live production.

Consider a manufacturing company called JN Sports Gear Pvt. Ltd. that produces Cricket Kits. Each cricket kit includes multiple components such as Cricket Bat, Ball, Gloves, Pads

In this scenario, the Cricket Bat is treated as a raw material / component item used in assembling the final product, Cricket Kit.

The company follows the Standard Costing method, so the standard cost of the cricket bat directly impacts:

• Finished product cost (Cricket Kit)
• Inventory valuation
• Cost of Goods Sold
Package based on our purpose
• Profit margin per kit

Since the company follows the Standard Costing Method, any increase in component cost affects:

• Production BOM cost rollup
• Work in Progress (WIP) valuation
• Finished goods standard cost
• Cost of Goods Sold (COGS)
• General Ledger postings

As the cost of the cricket bat has increased. use Configuration Package to update standard cost of the cricket bat.

In Business Central, updating Standard Cost requires careful planning because the costing engine recalculates Value Entries during the Adjust Cost – Item Entries batch job. Improper updates may lead to discrepancies in inventory valuation and General Ledger balances.

If inventory already exists for the item, updating the Standard Cost field alone does not adjust historical Item Ledger Entries. A Revaluation Journal or Standard Cost Worksheet process must be completed to ensure financial accuracy and audit compliance.

Points to consider -

• Ensure no open inventory transactions.
• Run Adjust Cost – Item Entries batch.
• It’s better to use standard cost worksheet instead of configuration package.
• Partner’s assistance is advisable for below process.

• The following item reflects a standard cost update from 3,500 to 3,750.

• Navigate to ‘Configuration Packages’ page by searching in tell me box and click ‘New’.
• Give the proper code and description for the config.

• Include only the necessary fields for scenario, Item No and Standard cost.

• Click ‘Export to Excel’ from ‘Configuration Package’ page for making the changes in excel for the desired item’s standard cost.

• Current state of the data will be shown in the downloaded excel file with standard cost as 3,500. By editing, update the standard cost of the item to 3,750.

• Navigate to configuration package and import the updated excel file using ‘Import from Excel’ action. Review and validate imported data for errors. Click ‘Import’.

• Click ‘Apply Package’ to apply the changes to the expected record.

• The changes have been successfully reflected in the expected record.

Method	Use Case	Revalue Existing Inventory?	Recommended For
Item Card	New items	No	Single manual updates
Revaluation Journal	Existing stock	Yes	Financial cost adjustments
Standard Cost Worksheet	Manufactured items	Yes	BOM cost rollups
Configuration Package	Bulk master data update	No	Mass updates in controlled environment

Choosing the correct method ensures accurate inventory valuation and prevents financial inconsistencies.