On the whole cost roll up timing. If you do a cost roll up WHILE there is
inventory activity, does it really affect the results of the what gets
posted to GL, if you are using standard costs? My reasoning is this. When
the INV920, Post Inventory to G/L, is executed, doesn't it post the
current standard cost and not the standard cost at the time of the
transaction?
Norman K. Boyd
MIS Administrator
Showa Aluminum Corp. of America
CONFIDENTIALITY NOTICE: This e-mail message is intended only for the
person or entity to which it is addressed and may contain confidential
and/or privileged material. Any unauthorized review, use, disclosure or
distribution is prohibited. If you are not the intended recipient, please
contact the sender by reply e-mail and destroy all copies of the original
message. If you are the intended recipient but do not wish to receive
communications via email, please advise the sender immediately.
From:
"Bunch, Wendy" <wbunch@xxxxxxxxxxxxxx>
To:
<bpcs-l@xxxxxxxxxxxx>
Date:
08/21/2009 09:47 AM
Subject:
[BPCS-L] Re Inventory revaluation
We prefer to change standards at month end as well - but if you can't as
Al says - Here's what I do..
It does vary with each situation - I'm going to assume you are talking
about a change to an end item part.
I check the Bom and Router set ups for end item and subasy - Look at
CST300 action code 15 - list my sub asy/phantoms and look for any raws
with no cost..
Verify in INV300 how much stock on hand of all the items I'm going to
change
Make my raw material changes in INV100 in my "roll up" cost set - If
there was material on hand, do print screens of CST300 action code 17,
comparing my existing std cost to the "rollup" cost set cost - screen
will show you the value change at the bottom - use this for back up for
my manual journal entries to Inventory and Cost Revaluation. Then change
the cost in my current std, and Frz std cost sets- repeat the process
for all raw parts. Roll up costs in my "roll up" cost set for the end
item and subasy -- do print screens as need with the CST300 as before
for the subasy /end item parts. Verify rolled up correctly use CST600
to copy the costs to the other cost sets. I do wish it would create a #
record for this.
As we use frozen standard costs - may also have JE's to deal with
COGS/Wip Differences or PPV.
Again many, many situations - Ideally - change costs at month end after
processing the current month - with everyone out of the system - run
Inventory reports - make your changes - rerun inventory reports or any
other documentation you need and then book the revaluation entries. Then
open the system up for the new month.
message: 4
date: Wed, 19 Aug 2009 11:36:01 -0700
from: "Michael Perna" <MPerna@xxxxxxxxxxxx>
subject: [BPCS-L] Inventory revaluation in BPCS
Running BPCS 4.3
Issue:
We are posting inventory transactions to the G/L and there are times
when the inventory is off. We've discovered it has to do with the
changing of standard costs.
When a user changes the standard cost via CST100, an ITH record is
written with a # type and quantity is zero. When posting IN
transactions to the G/L it bypasses all records with a quantity of zero.
How does BPCS ever revalue inventory? Also, when the standard cost is
generated via CST600, the #record is not written. If the standards for
components are changed and the cost gen is run, how does the finished
good inventory get revalued?
Thank you all.
Michael Perna
Business Systems Analyst - Finance
t. 310.832.8000 | f. 310.519.2605
P.O. Box 1950 | San Pedro, CA 90733 | USA, Earth
contessa.com <
http://www.contessa.com/>
------------------------------
message: 5
date: Wed, 19 Aug 2009 15:20:42 -0400
from: Dan Sweeney <dsweeney@xxxxxxxxxxxxxxxx>
subject: Re: [BPCS-L] Inventory revaluation in BPCS
The revaluation of Inventory is a task that should be handled manually.
The "subsystem" value for the perpetual inventory is the 'current" cost,
be it standard or frozen (depending on how you value your inventory in
the G/L). The current cost is defined as the cost in the system,
whether it be a component cost that is maintained in CST100 or an
established rolled-up cost that is created in CST600 times the on-hand
balance. BPCS will not post a revaluation entry to the G/L if and when
the standard costs change. You have to realize the valuation change via
reports and/or queries and book the cost change to the G/L.
Dan Sweeney - Sr Technical Consultant
PHOENIX Business Consulting, Inc.
Cell: 860.490.6712
www.phoenixbcinc.com
?
------------------------------
message: 6
date: Wed, 19 Aug 2009 13:50:33 -0700 (PDT)
from: Arthur Shaffer <abshaffer@xxxxxxxxx>
subject: Re: [BPCS-L] Inventory revaluation in BPCS
Michael,
When you change standard costs, it is best to do it as part of the month
end closing.
You need to?run the inventory evaluation report under the?old cost,
change the cost then rerun the inventory evaluation.
Then enter a manual inventory change to the GL inventory account.
If you have more than one inventory GL account, this process needs to be
done for each GL grouping.
No inventory transactions should be processed during this procedure!
If you need the details?to this process, send an email directly to me.
?Art Shaffer, CPIM?
------------------------------
message: 7
date: Wed, 19 Aug 2009 23:05:12 -0500
from: "Al" <macwheel99@xxxxxxxxxx>
subject: Re: [BPCS-L] Inventory revaluation in BPCS
Here's how this works in 4.0.5 CD which may have some differences.
Also some stuff can depend on the system parameter settings.
Years ago, we could make sure everything entered on items before
processing them, but lead times have become shorter with customers
clamoring for us to start work on new items right away. So it is not
unusual for us to start production before engineering is done, order
parts before they are costed, ship to customers before priced. I have
some reports that look for mismatches such as stuff active in MRP whose
cost master is null. By the time some things are fixed, some damage has
been done to our accuracy.
There is a program to update transaction effects which says where IN
etc.
transactions are to go for GL, stored in ITE file, and a GL program to
say how much detail when it gets there.
We are doing IN lump sum for a whole day's input.
We are sending A adjustments to GL Journal AJ with full detail.
Some other transactions using their own Journal ID with varying detail.
We have added a lot of reason codes for adjustments, and some other
kinds of transactions.
The cost of the transaction in ITH is as of when the transaction occurs.
Suppose we have a new item, and the cost has not gone in there yet, but
there are some transactions. Those transactions occur at zero cost.
Then the cost gets fixed ... suppose you have 10,000 of the item on
hand.
The cost of the quantity of inventory, jumps to 10,000 times that cost,
but nothing happens to General Ledger. So now if you were to list
on-hand times cost, it will be out of balance vs. GL.
When we do a purchase order, there is an expected cost, which comes from
the standard, but can be updated.
When the inventory is received, it goes in at the standard cost, because
our system parameters say to do things at standard cost. The opposite
GL entries are value of inventory added vs. what we owe vendors for
value received, not yet invoiced.
If the standard cost gets entered for the item after receiving, but
before invoice from vendor, then the GL is way off for both value of
inventory, and what we owe vendors for received, not yet invoiced.
When the payable invoice is entered, it goes in at actual cost,
generating a material variance for the difference between actual cost of
the invoice, and standard at the time of the invoice going in. The
opposite GL entries are what we owed vendors not yet invoiced, vs. what
we now have in payables.
If the new item has not had standard cost entered by time of invoice
from vendor, we have a humongous variance, then if the standard cost
entered later, we now have $ added to on-hand, bypassing the General
Ledger.
Before running CST600, we copy standard to simulation cost set.
After running CST600, we run a report that lists items that have a
difference between standard and simulation, that difference times
on-hand, to get the change in the value of our inventory, thanks to the
rollup.
After running shop order purge, we run a report that calculates value of
inventory consumed by open shop orders, where the shop orders not yet
completed. I call this "black hole" of inventory "off the books." A
more politically correct name is "value of inventory between discrete
items in the factory pipeline."
We also have a TRUE MATERIAL COST which is actual copied to this cost
set, then that rolled up. This is for people who want to see impact on
end items by changes in actual cost, without waiting on shop orders to
trickle it up in production.
-
Al Mac
Happy I remain this functional: Wake up each morning; roll out of bed;
feet touch floor; I can stand up (sometimes need to push with arms);
walk; get to toilet; all familiar systems do their thing.
-----Original Message-----
midrange.com
