Standard Costing in Sage is a hybrid of moving average and standard -- and as you've discovered, it can be so confusing that we rarely find a reason to use it. Your PJC scenario might be one of those cases where it would make sense, but I don't think it will work.  

The Order retains the Standard Cost, even after shipment. Shipment and Invoice show actual / average cost.  When they hit the GL, the costs are removed from inventory at Actual, posted to COGS at Standard, and the difference is properly recorded in Cost Variance.  But subledgers (OE / IC / PO / PJC) are recorded at Actual.

Not the answer you were hoping for, but it might help you stop hitting your head against that wall :-(

I am very tempted to call Sage and walk them through my scenario and see what they say.

Dear Prabha,

Below is the details which as given by sage in the help file, this is to make you understand as why it posts the cost as average cost. In the Help menu you may look for Setting up Inventory Control - Costing Methds - Standard Costing.

About the Standard Costing Method

Standard costs are carefully predetermined target or attainable costs that are useful in building budgets and gauging performance. You might use this method if your item costs do not vary much, or if stock turnover is rapid.

When you use the standard costing method, Inventory Control records the difference between the weighted moving average cost and the standard cost in the cost variance general ledger account, and uses weighted moving average to value your inventory.

Under the standard costing method, actual costs are posted to inventory upon receipt. The inventory is then valued and reported on the basis of the weighted moving average cost for each item at a location. When you ship goods, the cost of goods sold is calculated using each shipped item’s standard cost.

You can change the standard cost of an item at any time using the Location Details screen.

Warning! If you ship units of an item for which you have not yet entered a standard cost, Inventory Control calculates the cost of goods sold using a standard cost of zero.

Thanks TK. I wish Sage 300 would do as the explanation. But it does not. I did several tests (sample and customer data) and when it posts the order (OE) or job (Service Manager), the order or job all take on avg cost even though the item was set to use standard cost. If it uses avg cost in inventory that's fine but it should cost the job/order using std cost and it definitely does not.

Ah, you are using Service Manager.  Could this be a service manager issue??  

I thought it was at first and then I did the test in Order Entry and it does the same thing. 

Just confirm if I say all are correct. Item standard cost is 40$ Each (I set the system), Receipt was done as 50$ (Mov Avg cost). If I order, then cost is 40$ and price is 100$(that I entered). Posting shipment shows 40$ as cost and the variance 10$ in cost variance account. Invoice will show the same cost of good sold account of 40$. Inventory has gone to 50$, 10$ goes to cost variance. I do not have any issues with system setup. Try add new item as above and test in sample company without service manager. It will work.