Jim,
It's how you automatically calculate purchase price variance. The RP
transaction debits an inventory account and credits an AP accrual account
(at standard). When you process an invoice, you debit an AP Clearing account
and credit AP Trade (at actual). This automatically creates a CA transaction
(when the automatic cost adjustment is selected) which debits the AP accrual
account at standard, credits the AP clearing account at actual and debits or
credits purchase price variance as appropriate. This leaves you with a debit
to inventory, a credit to AP trade and either a debit or credit to PPV based
on the difference between actual and standard cost. This would all be set up
using the Inventory Management rules and priorities.
If you don't want to use this feature, you can turn it off at the personal
ledger level (you don't have to turn it off for each entity).
Vanessa King
IFM & FRx Consultant
-----Original Message-----
From: mapics-l-bounces@xxxxxxxxxxxx [
mailto:mapics-l-bounces@xxxxxxxxxxxx]
On Behalf Of Sansi, Jim
Sent: Tuesday, July 03, 2007 7:40 PM
To: MAPICS ERP System Discussion
Subject: [MAPICS-L] IFM Cost Adjustment Txns
Alright here is one I hope one of our resident IFM gurus can answer:
What exactly does the automatic cost adjustment flag maintained in an
entities personal account data mean? These CA transactions being
automatically posted when a payable is entered is causing us a lot of
grief (like taking a zero cost item and blowing up its cost) when it
comes to reconciling inventory to the GL numbers... However this
"feature" apparently is turned on by default so naturally I am a bit
weary of flipping the switch to off.
Thanks!
-Jimmy
midrange.com
