Rolling Costs

[dmrVA]

Has anyone ever rolled costs during the month instead of month end? What are the implications of doing this?

In reviewing this past month, we had a lot of material increases and I'd rather the Finished Goods parts reflect accurate costs and not wait till month end.

 

[dgillz]

Donna,

I am assuming you have not purchased the Std Costing module.

The Print Costed Bill with the checkbox "update parent cost in inventory" checked will do just that. It will debit or credit the inventory asset account as defined in the Matl Cost Type/Location and the other side of the entry will go to the cost adjustment account. It also creates type C transactions in the IMINVTRX table.

If there is no matl cost type/loc record that corresponds to the parent, it will use the same values but come from the IM control file.

How this affects subsequent transactions depends on what cost method you are using and the cost to use when posting flag in OE setup. If you have any specific questions fire away.

Software Sales, Training, Implementation and Support for Macola, Synergy, and Crystal Reports. Check out our Macola tools:

http://www.gainfocus.biz/exceladdin.html

 

[dmrVA]

Nope..don't have std cost module.
Cost method to use in OE Setup = Actual
Inventory cost method in IM Setup - Std

I am thinking any orders already keyed/shipped after the cost roll will use the cost amount created at that point in time.

At mth end I manually recalculate the inventory to the correct purchase price, so we know we are not capturing FG costs 100% accurate...so it is a point in time issue for FG.

 

[dgillz]

The cost to use when posting flag is A-Actual, so the std cost at the time the invoice is posted (assuming you are not using confirm pick or confirm ship) is what will be used.

If this flag was L-Line Item, the std cost at the moment the order was entered will stay with the item forever, even if that cost was zero.

I don't see any problems with what you are trying to do but I would bounce it off your CPA firm.

Software Sales, Training, Implementation and Support for Macola, Synergy, and Crystal Reports. Check out our Macola tools:

http://www.gainfocus.biz/exceladdin.html

 

[dmrVA]

Thanks, Don. Happy Easter.