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 · Accepted solution]

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.

[Gerald1]

Thanks for your reply and suggestion Ian. Since it is optional, I have taken your suggestion and decided not to use it.