I have had the same problem.
We have new customer parts ... the engineers figure out what raw materials will be needed, define those raw materials, get the BOM & routings setup ... so far the standard cost is zero, because we do not really know what it is going to cost yet ... there will be a sample run, and in the process of that, we will nail down some costs & finish quote to customer, but might not be in a big hurry to update all the right places, so next what happens is Purchase Orders created for the new raw items.
* standard cost is zero
* expected cost is zero
But it is not just that the cost is zero (in CIC file) the CMF cost master file is NULL so if we have any query/400 or other reports that match activity with CMF costs, those items are invisible from those reports.
When the inventory arrives (transaction code U) received against PO ... we get General Ledger being told that inventory of zero value walked in the door so the Unvouchered value (PUR210 & the corresponding GL account) is zero.
Our auditors and chief accounting people want the General Ledger value of our inventory to be very much in agreement with the actual quantity times standard cost, so we are very much on top of transactions with missing costs, inventory at zero cost, etc.
Then when ACP500 posts the purchase, where the vendor is to be paid some actual cost ... the payables are correct (actual $), but a huge variance goes into unvouchered and material cost variance that is incorrect.
Now that we know the correct $ value, we have to do General Ledger adjustment entries to fix things to agree with what would have happened had we had the correct standard cost in the first place.
Debit inventory value
Credit GL variance of where we pay vendors some $ that is extremeely different from expected standard cost
Another thing that happens is before the actual Payables invoice arrive from the vendor, we figure out what the cost should be & update the standard cost ... but if this happened after the receiving (U) against the PO, we stlll need correction
Debit inventory value
Credit unvouchered (PUR210)
If we find out the correct cost, and get it entered before the receiving (U), then the PO can be updated to fix the expected cost
I have created several reports to data mine instances of
* Purchase orders on items with zero CIC cost ... often the Purchasing Manager did not know it was a new item with cost missing
* MRP requirements for items whose CMF cost is null & I replace that with zero so as not to mess up reports down-stream with results of people acting on the MRP
* aggregate U vs. C transactions where we apparently bought and paid for more stuff than we actually received ... our 405 CD BPCS allows us to have some U then some C then correct the U with the C being none the wiser
Al Macintyre
becoming less of a BPCS data quality janitor & more of a data miner, with e-pick & e-shovel
---- Original message ----
Date: Tue, 11 Sep 2007 15:58:39 -0400
From: daparnin@xxxxxxxxxxxxxx
Subject: [BPCS-L] Zero Expected Cost
To: bpcs-l@xxxxxxxxxxxx
I had a question from a user about ACP500 in BPCS 4.02 as to why the
"amount to cost" field was coming up with a zero value. From what I've
seen this comes from the expected cost field in the HPO record. That
raises the question as to the source of the expected cost. I found a
message in the archives describing the expected cost:
http://archive.midrange.com/bpcs-l/200701/msg00046.html
"What happens is, when the PO is first created, the expected cost field is
a copy of the standard cost, then after the vendor confirms our PO with
the delivery date, pricing etc. our Purchasing people update the PO with
that info. The new cost goes into the EXPECTED COST, which is what we
expect the actual cost to be."
In our case this is a new part number and this is the first time that
we've received anything against it. Is it likely that the reason that
it's coming up a zero in ACP500 is because there was no cost on file when
the PO was first entered?
Dave Parnin
--
Nishikawa Standard Company
Topeka, IN 46571
daparnin@xxxxxxxxxxxxxx
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