Re: CST600 question; what controls rollup of buckets?

["Chick Doe" <Cdoe@xxxxxxxxxxxxxxxxxxxxxx>]

this is too good of a question to ignore!

i am also having issues with the cst600/cst500 process. specifically we are 
having occurrences where the sum of the this level costs is not equal to the 
bucket 0 this level cost. you mention seven cost buckets. we also have seven 
cost buckets which are:
material
material burden
outside processing
setup labor
setup burden
run labor 
run burden

you don't mention which cost your bucket 7 is. 
here is the situation that we have experienced. suppose you have a purchased  
part and you put in a material cost and possibly a material burden cost. they 
go into the this level buckets. then suppose you change the part to a mfg part, 
and add a bill and routing to it. now when you run cst600, the program will 
calculate all of the setup cost, run costs, and op costs from the routing and 
place then into the this level costs. when it does this it will also calculate 
the bucket 0 this level cost, based upon the costs that it just calculated form 
the routing. but if you have a this level material or material burden cost 
still sitting in the this level fields, cst600 does not include these costs 
when it calculates the total this level cost for bucket zero. 

i have given ssa substantial documentation about this and they claim that this 
is not a program problem. their explanation is that you should not have this 
level material costs when you have a routing for a part. in general this should 
be the case, but i have argued, apparently with no results, that it is more 
important that they keep the integrity of the cost records. if the bucket 0 
total cost for a part is not the sum of the individual cost buckets, you will 
get inconsistent results when you try to value inventory. we have written 
several reports where we value inventory using the individual cost bucket 
(summarized to labor, material, and burden) and these reports show different 
values than if you use the bucket 0 costs for a part.

hopefully this will help. if you are experiencing the same problem please 
contact ssa and ask them to fix the problem. i believe that the bmr number that 
i tried to get them to fix this on is bmr 54681.

chick doe 
barton instrument systems

>>> JMartin@iwgid.com 04/17/00 11:46AM >>>
I am interested in knowing what controls the rollup of the cost buckets.  We
have 7 cost buckets but when we run CST600, bucket 7 this level isn't
included in bucket 0 this level.  However, previous level bucket 7 is
included in bucket 0 previous level.

Thanks,
Jerri Martin
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