The costing function is one of the most critical subjects in the ERP implementation, specifically inventory costing. In the competitive and emerging markets of today, we aim at getting the best usage from the current company resources in order to ensure that they are translated into company profitability and more potential cash flow. On the other hand, the inventory cost affects the company reporting in the balance sheet and income statement along with the cost of goods sold and cost of production. This function requires intensive workshops during the implementation life cycle to contest the business costing model and how it will be mapped to Microsoft Dynamics AX.

In this chapter, we will cover the following topics: