Re: Question on M/O's from C/O's -- MAPICS-L

Dale, I realize the question about using feature and option costs for MO's
has come up before. Perhaps explaining things again would be helpful:

When you set up a standard cost for an item all movements in and out of
inventory are based on that standard. When you change an item's standard
cost you effectively revalue your inventory. MAPICS tracks standard cost
changes and automatically makes the G/L entries to record the revaluation.

If you used the COM-generated standard cost, you would be unintentionally
revaluing your inventory each time you put an item to stock. Trust me, your
auditors would go ballistic!

If you manufacture a feature and options item, MAPICS uses the COM BOM to
backflush material, labor, and overhead. Since the standard cost. Since this
BOM differs from your engineering standard cost, it results in MO variances
which you can record, by cost element, in your general ledger. Bottom line,
the differences between F/O costs and engineering costs are recorded when
they happen--they are not lost.

There are several things you can do to get better standard costs for F/O
items:

(1) If the cost impact of F/O selection is so great that you are really
dealing with different items, then setting up different item numbers is the
way to go.

(2) When you create standards for F/O items, you can estimate the percent of
products that use each F/O item and then have MAPICS calculate a standard
cost that reflects your weighting.

(3) You can use the COM files to generate reports that use the item's actual
feature and option cost. Barring changes in your standards, these costs
should equal the engineering standard cost +/- the variances that MAPICS
records when it closes out the MO.

Bob Tenney
Bob Tenney Solutions, LLC
MAPICS - FRx - Presence - Crystal Reports
828-526-8976

Visit www.tenneypubs.com for books about
IFM, COM, G/L Interfaces
Info WorkPlace, Cost Accounting,
FRx, and PRESENCE
----- Original Message -----
From: <DaleGindlesperger@xxxxxxxxxxx>
To: <mapics-l@xxxxxxxxxxxx>
Sent: Tuesday, May 20, 2003 9:57 AM
Subject: Question on M/O's from C/O's


> Hello group!
>
> I'm hoping one of you has already had to deal with this situation and can
> help me.  Here's the scenario.
>
> We produce one of our product lines (the Coleman Caravan travel trailer)
as
> make-to-order, configured using COM's Features and Options.  That is more
> than adequate for our needs.  The sales person goes through the order
form,
> and picks the options for the trailer.  COM F&O builds a customer order
> bill of materials and costs it out.  The order sits in queue until it is
> scheduled for production (there is no date assigned during COM order
> entry).
>
> When the trailer is going to be built and shipped (1.2 days on the line),
> the factory department scheduler releases the manufacturing order from the
> customer order, standard MAPICS I/M order release feature.  That takes the
> COM open order bill of material and loads it to the MO bill of material.
I
> understands why MAPICS does it that way - the order has been costed using
a
> custom built product structure and that could be important for product
> costing.  Incidentally, that is NOT an issue for us.
>
> The problem is that during the interim period between when the CO is
> entered, and the MO is launched, Engineering effectivity dates may (do)
> pass, and the MO bill of material is no longer accurate for production.
We
> use MDCC's automatic inventory backflush by operation (hundreds of
> components per operation, not practical to verify on the line), and we are
> charging parts that are no longer used or available, and not charging
parts
> that are actually being used.  An example would be if we change tire
> manufacturers.  We charge out Company X's 14" tire, but actually put on
> Company Y's 14" tire.  Instant Automatic Inventory Error!
>
> I need to have the bill of material rechecked for effectivity dates when
> the order is released to production from the customer order.  The only way
> I can think of is to have the factory department scheduler enter the MO in
> I/M, and just use the S-number from the CO to have I/M order release
> rebuild the open order bill of material, then go in and add the CO#
> information after the order is released.  (I could write something to do
> that automatically, I suppose).
>
> Have any of you on the thread had to deal with this?  And have you come up
> with a better idea?
>
> Thanks!
>
> Dale Gindlesperger
> IT Manager
> Fleetwood Folding Trailers, Inc.
>
>
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