Re: cost generation question

In message <s9afa6ae.050@gwia.barton-instruments.com>, Chick Doe
<Cdoe@barton-instruments.com> writes
>it's that time of year where we start worrying about physical inventory and 
>cost 
>standards revisions. we would like to develop new cost standards for next 
>year's 
>costs. the bpcs CST system provides the ability to establish new cost sets, 
>etc. 
>but part of our process is to establish new labor and overhead rates. so we 
>would like to establish a new cost set, copy our current standards into that 
>set, update the material standards in that set, enter new labor and overhead 
>rates, and then do a cost generation to see the resulting rolled-up costs. 
>only 
>problem is that there is no place to put new labor and overhead rates that i 
>know of. the only place that you can put them is in the work center file and 
>we 
>need to keep our current rates there to support SFC, etc. 
>
>am i missing something? how do other companies develop new rolled-up cost 
>standards?

There is one possibility that might be practical, depending on how many
Routing and work-centre references you need to maintain.
a) Create a cost set for your new costs
b) Create a facility reference to hold the new costs, 
c) Make copies of your work centres into the new facility, Obviously you
will have to use new numbers and a new department reference
d) Put your new labour and overhead rates into the new workcentres
e) build a set of routings for your items in the new facility
f) Run load standards from routings specifying the new facility and the
new cost set, this should generate labour and overhead bucket costs for
the new facility/cost set combination
g) Use Inter-Facility Cost Transfer(Cst940) to transfer the material
buckets from the old facility/Set to the new facility/set.
h) Audit the new costs and make any material changes directly to the
bucket using CST100
You can either keep them here until year end and do a facility transfer
to your new standards then; or copy them to a set reference in the old
facility now and do a standard transfer at year end.


I've assumed you don't want to change the BOM. If you want new BOMs and
new raw material prices this method will support that as well, it's just
more work.
-- 
Michael Ozanne (Also ozannem@pacific.co.uk)
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