Standard Cost Change Request Template
Changing a standard cost moves inventory value, variances and quoted margins all at once. This form records what is changing, why, the revaluation impact and who approved it, so the roll-up is deliberate and traceable. Fill it in and export a PDF or Word copy.
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Standard Cost Change Request Template
Standard Cost Change Request
Request: SCC-26-031 Date: 2026-10-20 Requested by: Plant cost accountant Item: BRK-4410 and components Effective: 2026-11-01
Proposed change
| Measure | Value |
|---|---|
| Current standard cost | 112.40 |
| Proposed standard cost | 118.90 |
| On hand quantity | 850 |
| Reason | Material price change |
Supporting detail
Aluminum plate price increased under the new supplier agreement. Routing times unchanged. Overhead rate unchanged.
Impact checks
| Check | Done | Comment |
|---|---|---|
| Inventory revaluation amount calculated | ||
| Open work orders and WIP considered | ||
| Quoted prices and open sales orders reviewed | ||
| Variance accounts and period timing agreed | ||
| Roll-up simulated before posting |
Approvals
Inventory revaluation is roughly on hand quantity times the change in standard cost. Confirm the accounting treatment with your finance policy and auditors. This form is a starting point, not accounting advice.
Preview roll-up impact before you post
Optional: see how revaluation and margin effects can be previewed from ERP data.
Optional. The tool and every export work without this. No spam.
How to use the form
Complete it before the cost roll-up or manual cost update, not after. Enter the current and proposed standard, the on-hand quantity at the change date and the effective date. Choose a reason and give the evidence: a supplier agreement, a routing study, a BOM revision. Work through the impact checks, then collect signatures. File the form with the roll-up run output so an auditor can trace a cost movement to a decision.
- Simulate the roll-up first where your ERP allows it
- Pick an effective date at a period boundary
- Keep one request per change event
The impact calculation
The inventory revaluation is approximately on-hand quantity multiplied by the new standard minus the old one. In the example, 850 units times a 6.50 increase gives about 5,525 of revaluation. Work in process and open purchase orders need separate treatment depending on the system. The posting goes to a revaluation or price difference account per your chart of accounts. Because this affects the balance sheet, controllers usually require sign-off.
Reading the result
Check the cost change percent: here it is about 5.8 percent, which is large enough to affect quoted margins on open quotations and sales orders. If the product is sold at fixed prices, the higher standard compresses margin immediately. Also look at whether the change comes from a one-off event or a trend, since a pattern may call for a pricing action rather than only a cost update.
ERP notes and mistakes
In SAP, standard price changes go through cost estimates with a marking and release step, and the period matters. In other ERPs the cost roll-up or item cost update has similar controls. Common errors are releasing a roll-up without simulating, changing mid-period without agreed variance treatment, and forgetting to update quote templates. Keep a log of all changes to support audits.
Frequently Asked Questions
When should standard costs be changed?
Usually at set intervals such as annually or quarterly, and after significant events such as new supplier contracts, routing changes or BOM revisions. Frequent ad hoc changes make variance reports harder to interpret.
How is inventory revaluation calculated?
Approximately on-hand quantity multiplied by the change in standard cost per unit. Include WIP and in-transit stock where your system revalues them. The result posts to a revaluation account as your finance policy dictates.
Who needs to approve a standard cost change?
The cost accountant or controller at minimum, plus engineering or operations to confirm routing and BOM inputs. Larger changes may need finance leadership approval. Set thresholds in your cost accounting policy.
Does this form replace the ERP change log?
No. It documents the business reason and approval. The ERP log records what the system changed. Keep both and reference the request number in the system notes where possible.
If you want a read-only preview of the revaluation and margin impact before a roll-up, we can help build it from your ERP cost and inventory data.
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