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  2. BPCS-L
  3. October 2005

Re: item costs (was: no subject)

To Daniel @ PHOENIX
So long as the inventory is unique item # in unique facility, the costing is satisfactory. The problem is the mandate to combine inventory into consolidated customer orders. By doing this, the costs get all mixed up, and they do not like that. So the question becomes if there is a way to preserve costing accuracy at the same time as satisfying the consolidated customer orders mandate. Plus do so without modifications. Implied is also the notion of doing so with a minimum of clerical overhead.
When combining differently costed item structures of two different items into one item, or same item from two facilities, not only do we lose cost tracking granularity, the costs are no longer accurate.
It makes sense for costs to evolve over time, because of effect of inflation on cost of labor, cost of materials, new machines mean more efficient production, etc. but in this case there are good reasons why parts from different facilities will always have different costs, that need to be tracked.
You might want to fwd to your consultant the link to this thread in the BPCS_L archives. The feedback was accurate in a general perspective, but it did not recognize the granularity of the problem being discussed here.
Also, in 405 CD, our ITH gets cost sets 1-actual & 2-standard. System Parameters determine which go to the General Ledger (we use 2-Standard) and other costing settings. 

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Al Macintyre  http://www.ryze.com/go/Al9Mac
BPCS/400 Computer Janitor ... see
http://radio.weblogs.com/0107846/stories/2002/11/08/bpcsDocSources.html

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