Title: 

Improve Overview Costing Accuracy After Changing Indirect Cost Rate for Production Orders

Description:

an issue in Dynamics 365 Finance and Operations where the overview costing becomes incorrect after changing the indirect cost rate for production orders. This issue has been acknowledged by the D365 Product group engineers and marked as "by design" (Issue 793402). The problem arises because the system recalculates costs based on the most recent price during inventory closing, and it is unable to distinguish the actual price used at the exact historical time point.

Problem:

When the indirect cost rate for production orders is changed, the overview costing does not reflect the accurate costs. This discrepancy can lead to incorrect financial reporting and decision-making, as the recalculated costs do not match the historical prices used at the time of production.

Remarks:

The current design recalculates costs based on the most recent price during inventory closing, which does not account for the actual price used at the historical time point. This limitation affects the accuracy of cost reporting and can cause confusion for users relying on precise cost data.

Proposed Solution:

propose an enhancement to the costing mechanism in Dynamics 365 Finance and Operations to ensure that the overview costing accurately reflects the historical prices used at the time of production. This could involve storing and referencing the actual prices used at specific historical points, rather than relying solely on the most recent price during inventory closing.

Benefits:

• Improved accuracy in cost reporting
• Enhanced financial decision-making based on precise cost data
• Reduced confusion and errors in financial statements