How NAV/BC calculates the Unit Cost on the Item Card.

In Dynamics 365 Nav/BC, At Item Card there is One flow field "Unit Cost".

There's a Myth that Unit Cost value update based on Costing Method, it has nothing to do with Costing Method.

* Unit Cost works on Weighted Average. It's Formulae is:

Unit Cost = ( Cost Amount (Actual) + Cost Amount (Expected)) / Item ledger Qty.

Let us Understand with example, how system calculating this field Value. Here I have taken the Transaction scenario.

Value Entries:

Item Ledger Entries:

Updated Unit Cost at Item Card:

To get the track of Weighted Avg. Calculation, click on the Unit Cost Value, system will take you directly to Average Cost Calc. Overview Page.

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Hope this will help.

Thanks for reading.