Let's execute the business flow with Standard Price as the costing method for the product internal category:
| Seq. | Cost Price of Product | (Sale / Purchase) | Inventory Valuation | Cost Price of Product (after Operation) |
| 1 | 60 | 100 quantity at the rate of 70 | 6,000 100 quantity * 60 product cost price | 60 |
| 2 | 60 | 100 quantity at the rate of 75 | 12,000 (200 * product cost price) | 60 |
| 3 | 60 | 100 quantity at the rate of 65 | 18,000 (300 * product cost price) | 60 |
| 4 | 70 | Change product cost price manually | 21,000 (300 * product cost price) | 70 |
Standard Price calculates the inventory valuation based on the cost price defined in the Product Cost Price field, and it does not include the purchase price in computation.
