---
id: video/N30HebR5nJk
type: video
title: Execution & Control Cost Control (2026)
summary: Cost control in Business Central manufacturing, from the item card to production order statistics. Covers costing methods, cost shares, the BOM cost share distribution report, work center capacity rates, and comparing expected and actual order cost, including the effect of manual flushing.
tier: official
language: en
tags:
  - cost control
  - costing methods
  - production orders
  - item costing
  - bom cost
  - capacity rates
  - manufacturing overhead
  - production variances
  - flushing methods
system: manufacturing
review:
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  at: "2026-10-07T22:46:31.651Z"
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  - kind: video
    url: https://www.youtube.com/watch?v=N30HebR5nJk&t=10s
    title: Execution & Control Cost Control (2026)
    date: "2026-09-08T11:44:43.000Z"
    commit: null
    t: 10
    quote: In Business Central cost control starts before we open the order. It starts on the item card.
  - kind: video
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    title: Execution & Control Cost Control (2026)
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    t: 46
    quote: Depending on the replenishment method defined, we will account for the purchase price or the actual production cost.
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    title: Execution & Control Cost Control (2026)
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    t: 75
    quote: Item cost is not one number. It is a roll up. Materials come from the production bomb. Capacity comes from routing operations.
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    title: Execution & Control Cost Control (2026)
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    quote: Business Central separates material cost, capacity cost, manufacturing overhead, scrap, and total cost.
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    title: Execution & Control Cost Control (2026)
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    t: 170
    quote: If the rate is wrong, the order cost will be wrong. If the time posted is higher than planned, capacity cost will move, too.
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    quote: Material cost was expected at 12,296, and capacity is accounted for 324, plus the 10% overhead.
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    title: Execution & Control Cost Control (2026)
    date: "2026-09-08T11:44:43.000Z"
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    quote: As some of the flushing methods were manual, we can see the material cost was higher, and production spent more time.
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video_id: N30HebR5nJk
channel: yt-microsoft
source_name: Microsoft Dynamics 365 Business Central (YouTube)
url: https://www.youtube.com/watch?v=N30HebR5nJk
published_at: "2026-09-08T11:44:43.000Z"
duration_s: 251
captions: full
audience:
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    title: Cost control starts on the item card
  - t: 21
    title: Costing methods in Business Central
  - t: 46
    title: Replenishment methods and cost posting
  - t: 75
    title: Item cost breakdown and cost shares
  - t: 110
    title: BOM cost share distribution report
  - t: 145
    title: Work center capacity rates and costs
  - t: 182
    title: Production order statistics and actual costing
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  - t: 46
    text: Depending on the replenishment method defined, we will account for the purchase price or the actual production cost.
    check: exact
  - t: 75
    text: Item cost is not one number. It is a roll up. Materials come from the production bomb. Capacity comes from routing operations.
    check: exact
  - t: 86
    text: Business Central separates material cost, capacity cost, manufacturing overhead, scrap, and total cost.
    check: exact
  - t: 170
    text: If the rate is wrong, the order cost will be wrong. If the time posted is higher than planned, capacity cost will move, too.
    check: exact
  - t: 194
    text: Material cost was expected at 12,296, and capacity is accounted for 324, plus the 10% overhead.
    check: exact
  - t: 213
    text: As some of the flushing methods were manual, we can see the material cost was higher, and production spent more time.
    check: exact
---

# Execution & Control Cost Control (2026)

> Cost control in Business Central manufacturing, from the item card to production order statistics. Covers costing methods, cost shares, the BOM cost share distribution report, work center capacity rates, and comparing expected and actual order cost, including the effect of manual flushing.

[Watch on YouTube](https://www.youtube.com/watch?v=N30HebR5nJk) · Microsoft Dynamics 365 Business Central (YouTube) · 2026-09-08 · 4:11 · tier official · reviewed (checked by Opus)

## Overview

The video is a 4-minute walkthrough of cost control for manufacturing in Business Central. It starts on the item card, where item cost is shown as a roll-up rather than a single number: materials come from the production BOM and capacity comes from routing operations.

It then shows the cost shares view, the BOM cost share distribution report, and work center rate setup. It ends on production order statistics, where expected and actual costs are compared and the effect of manual flushing and extra time posted is visible.

## Key points

- Cost control starts on the item card, before the production order is opened.
- Business Central supports FIFO, LIFO, specific, weighted average and standard cost. Standard cost defines theoretical cost and is used to account for production variances. The demo item uses FIFO.
- The replenishment method decides whether the item's cost is the purchase price or the actual production cost. The item card also defines how cost is posted to the general ledger.
- The cost shares view on the item card breaks cost into material cost, capacity cost, manufacturing overhead, scrap and total cost. Materials come from the production BOM and capacity from routing operations.
- The BOM cost share distribution report shows a chart and a table of how components and operations contribute to total cost, separating materials, capacity and overheads.
- Work centers define direct unit cost, indirect cost percentage and overhead rate. Capacity cost is based on posted time in minutes, so a wrong rate or extra posted time changes order cost.
- Production order statistics compare expected and actual cost for material, capacity and overhead.

## Chapters

- [0:00](https://www.youtube.com/watch?v=N30HebR5nJk&t=0s) Cost control starts on the item card
- [0:21](https://www.youtube.com/watch?v=N30HebR5nJk&t=21s) Costing methods in Business Central
- [0:46](https://www.youtube.com/watch?v=N30HebR5nJk&t=46s) Replenishment methods and cost posting
- [1:15](https://www.youtube.com/watch?v=N30HebR5nJk&t=75s) Item cost breakdown and cost shares
- [1:50](https://www.youtube.com/watch?v=N30HebR5nJk&t=110s) BOM cost share distribution report
- [2:25](https://www.youtube.com/watch?v=N30HebR5nJk&t=145s) Work center capacity rates and costs
- [3:02](https://www.youtube.com/watch?v=N30HebR5nJk&t=182s) Production order statistics and actual costing

## Features

Every feature below: status not stated, demoed.

| Feature | At |
|---|---|
| Costing methods | [0:21](https://www.youtube.com/watch?v=N30HebR5nJk&t=21s) |
| Cost shares on item card | [1:01](https://www.youtube.com/watch?v=N30HebR5nJk&t=61s) |
| BOM cost share distribution report | [1:50](https://www.youtube.com/watch?v=N30HebR5nJk&t=110s) |
| Work center capacity rates | [2:25](https://www.youtube.com/watch?v=N30HebR5nJk&t=145s) |
| Production order statistics | [3:02](https://www.youtube.com/watch?v=N30HebR5nJk&t=182s) |

## 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.

- other "Airpod coffee maker" at [0:10](https://www.youtube.com/watch?v=N30HebR5nJk&t=10s)
- other "work center 100 assembly department" at [2:25](https://www.youtube.com/watch?v=N30HebR5nJk&t=145s)

## Quotes

- [0:10](https://www.youtube.com/watch?v=N30HebR5nJk&t=10s) "In Business Central cost control starts before we open the order. It starts on the item card."
- [0:46](https://www.youtube.com/watch?v=N30HebR5nJk&t=46s) "Depending on the replenishment method defined, we will account for the purchase price or the actual production cost."
- [1:15](https://www.youtube.com/watch?v=N30HebR5nJk&t=75s) "Item cost is not one number. It is a roll up. Materials come from the production bomb. Capacity comes from routing operations."
- [1:26](https://www.youtube.com/watch?v=N30HebR5nJk&t=86s) "Business Central separates material cost, capacity cost, manufacturing overhead, scrap, and total cost."
- [2:50](https://www.youtube.com/watch?v=N30HebR5nJk&t=170s) "If the rate is wrong, the order cost will be wrong. If the time posted is higher than planned, capacity cost will move, too."
- [3:14](https://www.youtube.com/watch?v=N30HebR5nJk&t=194s) "Material cost was expected at 12,296, and capacity is accounted for 324, plus the 10% overhead."
- [3:33](https://www.youtube.com/watch?v=N30HebR5nJk&t=213s) "As some of the flushing methods were manual, we can see the material cost was higher, and production spent more time."