Understanding inventory costing setup

Article • 6/8/2026 • 1 min read

When your company sets up Made2Manage, it specifies how the system calculates costs for:

Inventory.
Estimates such as quotations and sales orders.
Order costing. (Determines how material, labor, and overhead costs of a component are rolled into the parent item’s material, labor, and overhead.)

Many transactions can change inventory’s value. Shipping items from inventory reduces its value, and receiving shipments can increase its value. For inventory, your company can set up Made2Manage to calculate its costs in one of two ways: by standard costing or by weighted average costing.