Inventory item - Standard cost

Gerald1

Greetings,

 

When creating a new item, under Buying Details tab, there is a text box called Standard Cost.

 

I am puzzled why Myob advises dollar value entered under Standard Cost must include tax. So for example, my cost price is $2.50 ex tax for a widget. So it means I must enter $2.75 incl tax.

 

I have selected GST (goods & services tax) from the drop down box called Tax Code When Bought.

 

Hope to get some clarification, thanks.

 

Regards.

 

 

IanChait

Hi @Gerald1 

 

I wouldn't advise using Standard Costs. It doesn't give an accurate Gross Margin by product, and there isn't a varaince account for the difference between actual and standard cost. I have one very dissatisfied client at the moment.