RE: Frozen & Standard Costs

["Atlante BPCS Team" <bpcs@xxxxxxxx>]

Bruce, could you please explain a little more the issue,

for me the Frozen will be the budget cost calculated at the beginning of FY
the Standard will be the cost revised during the year.

When you add a new product, first question is
        "do you want a Frozen cost for this Item?"
some companies will answer "No" because product was not existing at budget
time
companies will answer "Yes" then will create the standard cost for this
product and will then copy this cost to frozen.

I think it's important to remember that you should not recalculate the Std
cost set
the std cost recalculation procedure should be:

        1- Copy Std cost set to another cost set (15-Std calculation, for 
example)
        2- Run the Cost generation programs for this cost set only
        3- Run comparison reports
                (you should have created QRY's to calculate PPV variance)
        4- Copy the calculation cost set to std cost set
        5- You might want to post variance into financial

then you can copy the cost for this item to Frozen.

But if you want to compare revised BOM's Routing to actual one you can also

        0- Create a Budget Method Code, the link Cost set Frozen
                to the Budget Method code BOM & Route
        1- When budget is accepted, and Frozen calculated
                copy the BOM's and routes to the Budget Method code
        2- When a new product is created, create the std BOM and route
                copy this BOM and route to Budget Method code
        3- You can the re-calculate Std using the actual BOM's and Routes
                not changing the Frozen

I personally think that BPCS Costing is a powerful calculator
(excepted for Actual costs, but sorry I do not believe in actual)
the only issue are linked with the Work-centre rates, if you update the
rates during the year, if you recalculate Frozen you use new rates and
not Budget rates (workaround exists using a % variance to increase rates
but it would be better to refer to a Method Rate table)

If you want more details do not hesitate

Laurent PENOU, CPIM
Atlante Consulting France
eMail: lpenou@atlt.com


> -----Original Message-----
> From: owner-bpcs-l@midrange.com [mailto:owner-bpcs-l@midrange.com]On
> Behalf Of Conger Bruce
> Sent: Monday, January 25, 1999 5:24 PM
> To: 'bpcs-L@midrange.com'
> Cc: L'Heureux Paul; Robinson Sylvain
> Subject: Frozen & Standard Costs
>
>
> Does anyone report on both a frozen and standard cost that changes as
> the BOM's and routers are updated.
>
> Our thoughts are to use a unique cost set for both Frozen & Standard.
>
> As new products are added though, the only way to get the costs is to do
> a roll up which uses current Bom's and Routers thus "changes" our Frozen
> Standard. Any Thoughts
>
>
> Bruce Conger
> Royal Canadian Mint
>
> Any thoughts ??

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