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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.

  1. 0:00 Stock Keeping Unit Production Routing and Costing
  2. 0:46 Demo: Activating SKU Costing and Production Orders
  3. 1:26 Output Posting and Cost Analysis
  4. 2:08 Non-Inventory Costs in Production
  5. 2:49 Non-Inventory Cost Posting and Review
video Microsoft Dynamics 365 Business Central (YouTube) · 2025-04-01Watch on YouTube

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.

Features

Every feature below: status not stated, demoed.

Feature At
Production bill of material and routing on stock keeping unit 0:05
Standard cost per stock keeping unit 0:26
Calculate production standard cost function 0:46
Non-inventory cost inclusion in production cost calculation 2:08
Cost shares page enhancements 2:29

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.

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 “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 “the standard cost for items produced for specific variant or specific location will be carefully copied from the stock keeping unit”
  • 0:26 “First activate the standard cost per stock keeping unit in a manufacturing setup”
  • 1:06 “the location differs the cost also varies as it utilizes information from either the item card or stock keeping unit if available”
  • 1:48 “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 “accurate and explainable costing is a key feature of business Central what can we do better in this release”
  • 2:08 “you can also include non-inventory cost into the produ C cost calculation”
  • 3:26 “where you can view consumption entries with non-inventory costs as well as the cost of finished items”