How to Change Costing Methods Standard Costing to Average Costing (Doc ID 331805.1)

Last updated on JULY 06, 2024

Applies to:

Goal

How to change costing method from Standard to Average.

It is not possible to just change the costing method. This is because the item cost records created by the system and used for the costing process are specific to the costing method. So for Standard costing the item cost record is for cost type FROZEN, whereas for Average costing they are for cost type AVERAGE. These records are created when a costed asset item is assigned to the inventory org.

The preferred method is creating a new organization with Average Costing and then transferring the data from the old organization to the new one.

What is the Checklist of things to do?

Solution

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