Standard Costs : Item or Stockkeeping Unit?

Some time ago I talked about the possibility of managing different bills of materials depending on the item variant. The functionality, introduced more than a year ago, consists in the possibility of associating the bill of materials (and also the cycle) on the stockkeeping unit rather than on the item, as shown in the figure below.

Source : Marco Ferrari
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Stockkeeping Units (SKUs) in Microsoft Dynamics NAV

I often get the question, “What are Stockkeeping Units (SKU’s) in Dynamics NAV and what are they used for?”

First, we need to define what a Stockkeeping Unit is. For the longest time, I thought that the term Stockkeeping Unit was equivalent to the term “Item”. But if we look in the APICS dictionary, we find the following definition:

Bron : ArcherPoint
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Using Standard Costs on an SKU (Stockkeeping Unit)

Currently, the standard cost is only SKU specific for purchased Items. In order to calculate manufacturing variances it is necessary to have the following fields, which are only present on the Item Card: Single-Level Material Cost, Single-Level Capacity Cost, Single-Level Subcontrd. Cost, Single-Level Cap. Ovhd Cost, Single-Level Mfg. Ovhd Cost.

Bron : Microsoft Dynamics NAV Team Blog
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