We are also on 405 CD

When I see a part with material cost in both this and lower levels, I treat
that as an error, because in BPCS a part is either purchased, or
manufactured, one or the other.
lower level if manufactured, for the purchased component child items of that
parent
this level if purchased, and also purchased should be at bottom of BOM
structure, unless you doing some special modification to get at costs from
other than vendor purchases

405 CD does support some mixed processes, such as some operations by an
outside vendor (purchase order as sub-set of shop order) but we are not
using this feature

THIS level standard is supposed to be what is done makingthat part, such as
final assembly if not purchased, or buying the part if outside sourced raw
materials

previous level for standard cost is supposed to be what gets there when you
do a standard cost rollup of your BOM & routings ... it is the aggregate
cost of components of the item.

actual cost lower level is supposed to be what gets there when you purge
completed shop orders & this is the value of the materials that got consumed
in making those parts

Actual cost this level goes in from when payable invoices are entered by
accounting ... there is also a "C" transaction in ITH tracking when that
happened.

There are some problem areas.

Suppose you have the identical part in more than one facility, where in one
facility it is a manufactured part & in the other facility it is a purchased
part. If the part is transferred (T = INV510) between facilities, the cost
in the "from facility" can contaminate the cost in the "to facility", so you
end up with both the purchased and manufactured buckets populated.

We have parts were we buy or make depending on volume. Engineering is
supposed to be changed, and the old buckets cleared, because another rollup
just puts in the correct values, it does not remove the values that are not
relevant any more.

When people do CST100, it leaves a record in ITH with # transaction code.
Deciphering what is there can be a trial at first, but at least you can
determine who changed what item facility bucket set etc. cost when, to
review who is doing what is supposed to be doing.

Al Macintyre

On Wed, 21 Jan 2009 11:26:06 -0500, Bonus Matt wrote
To all:

Although I am sure we have covered this in other emails, I do not
see an easy explanation of what is a previous level and this level
costs. I am on 4.05cd. I created a new item with a Bill of
Material and a router. The material costs went into the previous
level bucket and the other setup, overhead, and outside process went
into the current level. But I have many purchased parts with only
material cost in the current level bucket. I also have parts with
both a current level and previous level for material costs. These
costs appear to be in error. I am writing to hopefully save me some
time, so that I do not have to delve into CST600 and figure out what
goes into each level. Please help if you can. Thanks

Matthew Bonus
I/S Manager
Truarc Company LLC
Email: mbonus@xxxxxxxxxx

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