--- id: video/DHODFt_jVO4 type: video title: "What's New in Manufacturing: Costing (2025 release wave 1)" summary: "Manufacturing costing changes in Business Central 2025 release wave 1: production BOM and routing can be defined on stock keeping units, and standard cost can be calculated per SKU after activation in manufacturing setup. Non-inventory costs can also be included in the production cost calculation, with new columns on the cost shares page and production order statistics. Both capabilities are shown in short demos." tier: official language: en tags: - standard costing - stock keeping unit - production bill of material - routing variants - non-inventory costs - cost rollup - production order costing - subcontracting system: manufacturing review: state: reviewed by: opus at: "2026-10-07T23:00:43.561Z" flags: [] generated: at: "2026-10-13T00:32:41.360Z" pipeline: 0.2.0 prompts: extract-video: 1 summarize-video: 2 input_hash: 6a3e28365a9abf26f2426c77bffcc41d2d7baf1a6904244d4f5d160d5ccaee90 evidence: - kind: video url: https://www.youtube.com/watch?v=DHODFt_jVO4&t=5s title: "What's New in Manufacturing: Costing (2025 release wave 1)" date: "2025-04-01T15:00:15.000Z" commit: null t: 5 quote: you can Define production bill of material or routing on the stock keeping unit this can be useful if a stock keeping unit represents - kind: video url: https://www.youtube.com/watch?v=DHODFt_jVO4&t=26s title: "What's New in Manufacturing: Costing (2025 release wave 1)" date: "2025-04-01T15:00:15.000Z" commit: null t: 26 quote: the standard cost for items produced for specific variant or specific location will be carefully copied from the stock keeping unit - kind: video url: https://www.youtube.com/watch?v=DHODFt_jVO4&t=26s title: "What's New in Manufacturing: Costing (2025 release wave 1)" date: "2025-04-01T15:00:15.000Z" commit: null t: 26 quote: First activate the standard cost per stock keeping unit in a manufacturing setup - kind: video url: https://www.youtube.com/watch?v=DHODFt_jVO4&t=66s title: "What's New in Manufacturing: Costing (2025 release wave 1)" date: "2025-04-01T15:00:15.000Z" commit: null t: 66 quote: the location differs the cost also varies as it utilizes information from either the item card or stock keeping unit if available - kind: video url: https://www.youtube.com/watch?v=DHODFt_jVO4&t=108s title: "What's New in Manufacturing: Costing (2025 release wave 1)" date: "2025-04-01T15:00:15.000Z" commit: null t: 108 quote: the material cost is identical for both items since they share the same bill of material however for stock keeping units subcontracting costs replace - kind: video url: https://www.youtube.com/watch?v=DHODFt_jVO4&t=128s title: "What's New in Manufacturing: Costing (2025 release wave 1)" date: "2025-04-01T15:00:15.000Z" commit: null t: 128 quote: accurate and explainable costing is a key feature of business Central what can we do better in this release - kind: video url: https://www.youtube.com/watch?v=DHODFt_jVO4&t=128s title: "What's New in Manufacturing: Costing (2025 release wave 1)" date: "2025-04-01T15:00:15.000Z" commit: null t: 128 quote: you can also include non-inventory cost into the produ C cost calculation - kind: video url: https://www.youtube.com/watch?v=DHODFt_jVO4&t=206s title: "What's New in Manufacturing: Costing (2025 release wave 1)" date: "2025-04-01T15:00:15.000Z" commit: null t: 206 quote: where you can view consumption entries with non-inventory costs as well as the cost of finished items links: learn: [] objects: - object/page/5510 features: [] topics: [] localizations: [] videos: [] posts: [] guidelines: [] video_id: DHODFt_jVO4 channel: yt-microsoft source_name: Microsoft Dynamics 365 Business Central (YouTube) url: https://www.youtube.com/watch?v=DHODFt_jVO4 published_at: "2025-04-01T15:00:15.000Z" duration_s: 228 captions: full audience: - functional consultant - administrator - end user chapters: - t: 0 title: Stock Keeping Unit Production Routing and Costing - t: 46 title: "Demo: Activating SKU Costing and Production Orders" - t: 86 title: Output Posting and Cost Analysis - t: 128 title: Non-Inventory Costs in Production - t: 169 title: Non-Inventory Cost Posting and Review features: - name: Production bill of material and routing on stock keeping unit status: unclear t: 5 verified: false status_source: video - name: Standard cost per stock keeping unit status: unclear t: 26 verified: false status_source: video - name: Calculate production standard cost function status: unclear t: 46 verified: false status_source: video - name: Non-inventory cost inclusion in production cost calculation status: unclear t: 128 verified: false status_source: video - name: Cost shares page enhancements status: unclear t: 149 verified: false status_source: video objects_mentioned: - page stock keeping unit card - page manufacturing setup Page - page cost shares page - page statistics page - page production Journal - page item Ledger entries page quotes: - t: 5 text: you can Define production bill of material or routing on the stock keeping unit this can be useful if a stock keeping unit represents check: exact - t: 26 text: the standard cost for items produced for specific variant or specific location will be carefully copied from the stock keeping unit check: exact - t: 26 text: First activate the standard cost per stock keeping unit in a manufacturing setup check: exact - t: 66 text: the location differs the cost also varies as it utilizes information from either the item card or stock keeping unit if available check: exact - t: 108 text: the material cost is identical for both items since they share the same bill of material however for stock keeping units subcontracting costs replace check: exact - t: 128 text: accurate and explainable costing is a key feature of business Central what can we do better in this release check: exact - t: 128 text: you can also include non-inventory cost into the produ C cost calculation check: exact - t: 206 text: where you can view consumption entries with non-inventory costs as well as the cost of finished items check: exact --- # What's New in Manufacturing: Costing (2025 release wave 1) > Manufacturing costing changes in Business Central 2025 release wave 1: production BOM and routing can be defined on stock keeping units, and standard cost can be calculated per SKU after activation in manufacturing setup. Non-inventory costs can also be included in the production cost calculation, with new columns on the cost shares page and production order statistics. Both capabilities are shown in short demos. [Watch on YouTube](https://www.youtube.com/watch?v=DHODFt_jVO4) · Microsoft Dynamics 365 Business Central (YouTube) · 2025-04-01 · 3:48 · tier official · reviewed (checked by Opus) ## Overview The video covers two costing areas in manufacturing. First, a production bill of material or routing can be defined on a stock keeping unit, which helps when a SKU represents a product variant or a location-specific way of producing an item. Standard cost for items produced for that variant or location is then taken from the SKU instead of the item card, using a new function that calculates production standard cost at SKU level. Second, non-inventory costs can be included in the production cost calculation. The demo shows new columns for rolled up material non-inventory cost and single level material non-inventory cost on the cost shares page and in production order statistics. Both features need to be activated in manufacturing setup. ## Key points - A production bill of material or routing can be defined on the stock keeping unit, for example when the SKU represents a different variant or a location with different production equipment. - Standard cost per stock keeping unit is activated in manufacturing setup; standard cost for items produced for a specific variant or location is then copied from the SKU. - A new function calculates production standard cost, so the SKU can have a different cost than the item card. - In the demo, a released production order has two lines for the same item at different locations; the cost uses the item card or the SKU if available. - After output posting, item ledger entries show two output transactions with actual costs; value entries split cost into variance, material and capacity. Material cost is identical because both share the same BOM, but for the SKU subcontracting costs replace internal capacity costs. - Non-inventory costs can be included in the production cost calculation after enabling the capability in manufacturing setup. - The cost shares page shows new columns for rolled up material non-inventory cost and single level material non-inventory cost; non-inventory cost is also visible on the production order statistics page. ## Chapters - [0:00](https://www.youtube.com/watch?v=DHODFt_jVO4&t=0s) Stock Keeping Unit Production Routing and Costing - [0:46](https://www.youtube.com/watch?v=DHODFt_jVO4&t=46s) Demo: Activating SKU Costing and Production Orders - [1:26](https://www.youtube.com/watch?v=DHODFt_jVO4&t=86s) Output Posting and Cost Analysis - [2:08](https://www.youtube.com/watch?v=DHODFt_jVO4&t=128s) Non-Inventory Costs in Production - [2:49](https://www.youtube.com/watch?v=DHODFt_jVO4&t=169s) Non-Inventory Cost Posting and Review ## Features Every feature below: status not stated, demoed. | Feature | At | |---|---| | Production bill of material and routing on stock keeping unit | [0:05](https://www.youtube.com/watch?v=DHODFt_jVO4&t=5s) | | Standard cost per stock keeping unit | [0:26](https://www.youtube.com/watch?v=DHODFt_jVO4&t=26s) | | Calculate production standard cost function | [0:46](https://www.youtube.com/watch?v=DHODFt_jVO4&t=46s) | | Non-inventory cost inclusion in production cost calculation | [2:08](https://www.youtube.com/watch?v=DHODFt_jVO4&t=128s) | | Cost shares page enhancements | [2:29](https://www.youtube.com/watch?v=DHODFt_jVO4&t=149s) | ## AL objects mentioned As heard in the captions. A name that matches one object page by exact type and name links to it; the others stay as named. - page "stock keeping unit card" at [0:46](https://www.youtube.com/watch?v=DHODFt_jVO4&t=46s) - page "manufacturing setup Page" at [2:29](https://www.youtube.com/watch?v=DHODFt_jVO4&t=149s) - page "cost shares page" at [2:29](https://www.youtube.com/watch?v=DHODFt_jVO4&t=149s) - page "statistics page" at [2:49](https://www.youtube.com/watch?v=DHODFt_jVO4&t=169s) - [page 5510 "Production Journal"](../objects/page/5510.md) at [1:26](https://www.youtube.com/watch?v=DHODFt_jVO4&t=86s) - page "item Ledger entries page" at [1:48](https://www.youtube.com/watch?v=DHODFt_jVO4&t=108s) Not found in BC28-30: page "stock keeping unit card", page "manufacturing setup Page", page "cost shares page", page "statistics page", page "item Ledger entries page". ## Quotes - [0:05](https://www.youtube.com/watch?v=DHODFt_jVO4&t=5s) "you can Define production bill of material or routing on the stock keeping unit this can be useful if a stock keeping unit represents" - [0:26](https://www.youtube.com/watch?v=DHODFt_jVO4&t=26s) "the standard cost for items produced for specific variant or specific location will be carefully copied from the stock keeping unit" - [0:26](https://www.youtube.com/watch?v=DHODFt_jVO4&t=26s) "First activate the standard cost per stock keeping unit in a manufacturing setup" - [1:06](https://www.youtube.com/watch?v=DHODFt_jVO4&t=66s) "the location differs the cost also varies as it utilizes information from either the item card or stock keeping unit if available" - [1:48](https://www.youtube.com/watch?v=DHODFt_jVO4&t=108s) "the material cost is identical for both items since they share the same bill of material however for stock keeping units subcontracting costs replace" - [2:08](https://www.youtube.com/watch?v=DHODFt_jVO4&t=128s) "accurate and explainable costing is a key feature of business Central what can we do better in this release" - [2:08](https://www.youtube.com/watch?v=DHODFt_jVO4&t=128s) "you can also include non-inventory cost into the produ C cost calculation" - [3:26](https://www.youtube.com/watch?v=DHODFt_jVO4&t=206s) "where you can view consumption entries with non-inventory costs as well as the cost of finished items"