This site was built to compliment the existing NetSuite Professionals Slack Community by adding a means for members to easily find answers to common questions and to create a searchable database of those questions and answers.

NetSuite Professionals

We're just implemented NS financials in September and are now tackling the inventory and outsourced manufacturing module.  For cost accounting purposes, how are people managing purchase price variances when the manufacturing process can take up to 9 months?

EY has recommended Standard Cost vs Avg Cost to value our inventory and are finding that NS records PPV for Raw Materials to COGS as soon as it is received.  We need to capitalize the cost until the product is sold.  Ideally, we would be interested in leveraging a SuiteApp if one is available.

are you items lot or serialized?  That is really the only way to ensure the cost and cogs are aligned.  If so, then you will need to use Lot Numbered.

Alternately you could use FIFO costing method.  It will not be an exact match for Cost to COGS, but it will get you closer.

I often see consultants recommend Standard costing when FIFO is a much better fit.