> ## Documentation Index
> Fetch the complete documentation index at: https://docs.vortexiq.ai/llms.txt
> Use this file to discover all available pages before exploring further.

# Landed Cost Variance vs Standard, Microsoft Dynamics 365

> Actual landed cost vs standard (planned) cost. Variance signals supply-chain or pricing changes upstream. How to read it, why it matters, and how to act on...

**Metrics type:** [Supporting Metrics](/nerve-centre/overview#metrics-types-explained)  •  **Category:** [Ecommerce Platform](/nerve-centre/connectors#connectors-by-type)

> Actual landed cost vs standard (planned) cost. Variance signals supply-chain or pricing changes upstream.

## At a glance

|                    |                                                                                                       |
| ------------------ | ----------------------------------------------------------------------------------------------------- |
| **What it counts** | `Actual Unit Cost - Standard Cost` per Item (Standard Costing only). Variance > 5% surfaced. Per-SKU. |
| **Tax treatment**  | n/a.                                                                                                  |
| **Currency**       | Reporting Currency.                                                                                   |
| **Time window**    | `30D`                                                                                                 |
| **Alert trigger**  | `>5% variance`                                                                                        |
| **Sentiment key**  | `cost_variance`                                                                                       |
| **Roles**          | owner, finance                                                                                        |

## Calculation

Calculated automatically from your Microsoft Dynamics 365 data. See the At a glance summary above for what the metric tracks and the worked example below for a typical reading.

## Worked example

US distributor on BC (Standard Costing on Items). 30D window: ELEC-LAPTOP-A14 standard $14.20 / actual $15.40 = +8.5% unfavourable variance. Cumulative variance dollars: \$32K negative on 26.7K units shipped. Signals procurement or supplier issue.

## Sibling cards merchants should reference together

| Card                                                                                       | Why pair           |
| ------------------------------------------------------------------------------------------ | ------------------ |
| [Avg Landed Cost](/nerve-centre/kpi-cards/microsoft-dynamics/average-landed-cost-per-unit) | Cost trend.        |
| [Margin Erosion Alerts](/nerve-centre/kpi-cards/microsoft-dynamics/margin-erosion-alerts)  | Downstream impact. |
| [Total COGS](/nerve-centre/kpi-cards/microsoft-dynamics/msd-cogs-total)                    | Total impact.      |

## Reconciling against the vendor's own dashboard

**Where to look in Business Central:**

> **Reports > Inventory > Inventory Cost Variance**
> **Item Card > Statistics**

**Why may differ:**

| Reason                            | Direction | Why                                     |
| --------------------------------- | --------- | --------------------------------------- |
| **Standard Cost vs FIFO/Average** | Either    | Card requires Items in Standard Costing |

**Cross-connector reconciliation:**

No commerce-side counterpart.

## Known limitations / merchant FAQs

**Only for Standard-cost Items?**
Yes. FIFO/Average Items have no Standard reference; the variance card hides for them.

**Variance dollars vs %?**
Both shown.

**When to update Standard Cost?**
Annually or when material vendor pricing changes occur. Revaluation Journal handles the inventory adjustment.

***

### Tracked live in Vortex IQ Nerve Centre

*Landed Cost Variance vs Standard* is one of hundreds of KPI pulses Vortex IQ tracks across Microsoft Dynamics 365 and 70+ other ecommerce connectors. Nerve Centre runs the detection layer; Vortex Mind investigates the cause when something moves; Ask Viq lets you interrogate any number in plain English.

[Start for free](https://app.vortexiq.ai/login) or [book a demo](https://www.vortexiq.ai/contact-us) to see this metric running on your own data.