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We got some questions on stuff I thought I understood & now I confused also 
... perhaps someone can clarify ... I illustrating our viewpoints using names 
changed to illustrate the major viewpoints I have recently heard.


T o m :

Shop Orders contain details of labor & inventory costed at time of reporting 
/ consumption.

Suppose we get a supplier price increase.
Our SYS800-06 says to use weighted average.

Thus, raw material reported to shop orders BEFORE the price increase, will be 
consumed at the OLD PRICE.
Raw material, consumed AFTER the price increase, will be reflected in ITH at 
the new average material cost.

Shop orders getting transactions before & after the supplier price increase 
will then have a mixture of postings using both prices.

When we do CST900, it pours aggregate results into corrected cost for what 
the shop order made.


D i c k :

Nice theory but BPCS aint that smart.

You see cut-off date on CST270 prompt?
That is saying to recalculate costs of stuff going into the shop order based 
on that date & only Allah knows where it gets the cost of back dates.
Check the help F1 here.

Costs are being calculated based on:
Cost Master Costs RIGHT NOW
times sum of materials in shop order FMA file;
and total labor reported in shop order FOD file
times labor rates in either work center or employee master;
RIGHT NOW, not at the time the transactions were reported via ITH & FLT.


H a r r y :

BPCS Help Text is inconsistent, written by programmers (who, as a class of 
people, are notoriously poor at explaining things - Al Macintyre, for 
example, if given choice of using a sensible illustration, will instead use 
1k words).  

SSARUN10 "communicates" a different story.

The only way to know for sure is to do a thorough test tracking what happens, 
something like this game plan:

1.   Carefully document everything done to a shop order.
2.   Post to the shop order.
3.   CST270 that order for later comparison.
4.   Change cost of ingredients that the order used.
5.   CST270 again & compare bottom line.
6.   Post some more stuff to the shop order.
7.   CST270 again & compare cost of ingredients with prior & new averages.
8.   Change cost of ingredients again.
9.   CST300 inspect cost of what is being made, before the purge.
10. CST900 close purge the order.
11. CST300 inspect cost of what is being made, after the purge.
12. Compare total ITH & FLT on that order with ultimate update to item cost, 
using software that is not contaminated by BPCS logic.

But first ask if anyone on BPCS_L has already figured this out.


MacWheel99@aol.com (Alister Wm Macintyre) (Al Mac)

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