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title: "AP: How do I move from Nominal Costing to Standard Costing?"
canonical: "https://kb.myframeworks.com.au/space/PROSTIXV48DOC/31100995/AP%3A%20How%20do%20I%20move%20from%20Nominal%20Costing%20to%20Standard%20Costing%3F"
format: markdown
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FAQ REVIEW AND APPROVAL TABLE TO BE COMPLETED Note : This table will be hidden when this FAQ is published. Complete the drop down selections first, then click 'Next' to replace the instructional text in grey with the detail of the FAQ. QUESTION: AP: How do I move from Nominal Costing to Standard Costing? ANSWER: To move from Nominal Costing to Standard Costing, perform the following: 1. Choose an appropriate date (for example, Month end) to make the change. 2. Create new 'Purchase Gains' & 'Purchase Losses' GL accounts: i. From the  ProStix Main Menu , select  General Ledger  then  File Maintenance  then  Chart of Accounts.  ii. Select the required company then select < F6> (Add). iii. Type a number and description. iv. Type ' R ' (Revenue) then select <F1> to save and exit. 3. Create a new 'Standard Cost Variance' GL account: i. From the ' ProStix Main Menu'  select ' General Ledger'  then ' File Maintenance'  then ' Chart of Accounts'.  ii. Select the required company then select  <F6> (Add). iii. Type a number and description. iv. Type  'R'  (Revenue)  then select <F1> to save and exit. 4. Add the new 'Purchase Gains' & 'Purchase Losses' GL accounts to your Branch GL control account settings: i. From the ' ProStix Main Menu'  select ' System Administration'  then ' System Setup'  then ' Define Branches'. ii. Select Branch - F1 to ' Branch G/L Accounts ' then enter accounts. iii. Select <F1> to save and exit. 5. Add the new 'Standard Cost Variance' GL account to your Branch GL control account settings:   i. From the ' ProStix Main Menu'  select ' System Administration'  then ' System Setup'  then ' Define Branches'. ii. Type or <f3> search for then select the relevant branch, then select <F1>till you reach the ' Branch G/L Accounts ' screen, then enter the account in the 'Standard Cost Variance' field. iv.   Select <F1> to save and exit. 6. Update System Tailoring option ' InvStdCst'  to  Yes. i. From the ' ProStix Main Menu'  select ' System Administration'  then ' Configuration'  then ' Tailoring Options' . ii. Select option ' Flags (Yes/No)' iii. Start typing  InvStdCst,  then when this flag is found, select  <F7> (Change)  and replace  'no'  with  'yes'. 7. Run a stock valuation report. i.  From the ' ProStix Main Menu'  select ' Inventory Maintenance'  then ' Reporting'  then ' Stock Valuation Report' . ii. Select all products and default values. Note the current stock valuation. 8. Enter a GL account enquiry. i.  From the ' ProStix Main Menu'  select ' General Ledger'  then ' Account Enquiry'. ii. Select the relevant company if appropriate. iii. Enter the  Stock on Hand GL account (via the 'Find By Name' or 'Find By No' options) , then arrow down to s elect the most recent period. Note the balance of account.  9. Enter a GL journal. i.  From the ' ProStix Main Menu'  select ' General Ledger'  then ' Transaction processing'  to bring your GL Stock on Hand account balance in line with your Stock valuation report. Refer to  General Journals  in the  General Ledger User Guide . The Journal should use your stock account and your stock adjustment account as the opposing entry. For example, your current stock valuation is $29,651.39 different to your Stock on Hand GL balance. Note : When Standard costing is enabled, this keeps the stock valuation and Stock On Hand GL accounts in sync by posting to the Purchase gains, Purchase Losses and Standard Cost variances GL accounts, rather than direct to the Stock Account as occurs under nominal costing. IF THIS FAQ DOESN’T RESOLVE YOUR  ISSUE: Contact  Sterland Support .