RE: item costs (was: no subject)

To Al Mac,

If the facility costing is accurate and the system parameters are set to
the correct cost set for posting.  Then the "standard" facility costs DO
NOT get convoluted.

It appears as though the standard costs are being changed often.

The originator of this subject has not told us the cost set or the
frequency of cost roll-ups.

We also do not know the version BPCS that we are referring to.


Daniel J. Sweeney       
Senior Technical Consultant
PHOENIX Business Consulting, Inc.
Matching What's New With What Already Works!
P. O. Box 237, Greensburg, PA 15601
Tel: 724.836.4446 x9, Fax: 425.988.7102
Cell:  860-490-6712    E-Fax: 832-550-5144
dsweeney@xxxxxxxxxxxxxxxx
www.phoenixbcinc.com
        

SSA GLOBAL Recognized Services Provider

-----Original Message-----
From: bpcs-l-bounces+dsweeney=phoenixbcinc.com@xxxxxxxxxxxx
[mailto:bpcs-l-bounces+dsweeney=phoenixbcinc.com@xxxxxxxxxxxx] On Behalf
Of Al Mac
Sent: Wednesday, October 12, 2005 5:00 PM
To: SSA's BPCS ERP System
Subject: Re: [BPCS-L] item costs (was: no subject)

To Daniel @ PHOENIX

So long as the inventory is unique item # in unique facility, the
costing 
is satisfactory.  The problem is the mandate to combine inventory into 
consolidated customer orders.  By doing this, the costs get all mixed
up, 
and they do not like that.  So the question becomes if there is a way to

preserve costing accuracy at the same time as satisfying the
consolidated 
customer orders mandate.  Plus do so without modifications.  Implied is 
also the notion of doing so with a minimum of clerical overhead.

When combining differently costed item structures of two different items

into one item, or same item from two facilities, not only do we lose
cost 
tracking granularity, the costs are no longer accurate.

It makes sense for costs to evolve over time, because of effect of 
inflation on cost of labor, cost of materials, new machines mean more 
efficient production, etc. but in this case there are good reasons why 
parts from different facilities will always have different costs, that
need 
to be tracked.

You might want to fwd to your consultant the link to this thread in the 
BPCS_L archives.  The feedback was accurate in a general perspective,
but 
it did not recognize the granularity of the problem being discussed
here.

Also, in 405 CD, our ITH gets cost sets 1-actual & 2-standard.  System 
Parameters determine which go to the General Ledger (we use 2-Standard)
and 
other costing settings.

-
Al Macintyre  http://www.ryze.com/go/Al9Mac
BPCS/400 Computer Janitor ... see
http://radio.weblogs.com/0107846/stories/2002/11/08/bpcsDocSources.html