Re: Looking for ideas

The product line we want to separate has no manufacturing attached to it.
We generally package the material and ship it. We do have inventory.   I
have just been informed that all other manufacturing is to be captured in a
second profit center.

We wanted to keep our warehouse intact at this time, because it would just
complicate picking again..

Our inventory evaluation reports can be separated by item class or
accounting class, (I'll create a code file) for use in the reports (I know
we will not be able to verify the entry of this code. (Maybe an exit
program)

I was also thinking of writing a report to total issues, by date range, for
this class. That would tell me how much of the material was used by the
other profit center. (Buying and selling from each other)



---- Original Message ----- 
From: "Bob Tenney" <bobtenney@xxxxxxxxxxxxx>
To: "MAPICS ERP System Discussion" <mapics-l@xxxxxxxxxxxx>
Sent: Thursday, August 21, 2003 6:51 PM
Subject: Re: Looking for ideas


> Meyno, I assume, from your posting, that your "profit centers" are similar
> product groups--not production facilities. If this is so, you can use the
> item class, item accounting class or item number to link items to profit
> centers. If this is not so you have a very different ballgame, please send
> another post.
>
> Here are some ideas:
>
> 1. Work backwards. Start with the profit center P&L reports that you want
to
> produce, then set up a chart of accounts to support the P&L, and finally
set
> up the G/L interface to charge activity to the right accounts.
>
> 2. In my view the item class should be your first choice because it is
> supported by a code file. If manufacturing has already claimed this field
> and is using it in a way that does not mesh with your profit center plans,
> then the item accounting class is your second choice.
>
> 3. You can use Item Number to join IM History (IIMHIST) to the Item Master
> (ITEMASA) to get a transaction's item class or item accounting class.
>
> 4. Is each profit center responsible for managing its own inventory? If
so,
> then you might consider having separate warehouses for each profit center
> and basing account assignment rules on the warehouse ID.
>
> 5. If you have material and sub-assembly items that you use in multiple
> profit centers it usually does not pay to identify these items to a single
> profit center. You can use the manufacturing order accounting class to
> identify manufacturing orders to profit centers. You must enter this code
> when you set up the manufacturing order.
>
> 6. If you have MAPICS Payroll interfacing to PCC you can charge labor and
> overhead to the profit center based on the MO's end item accounting class.
> If you do not have this interface, then you can use the same technique to
> charge shop activity or backflushed labor ando overhead.
>
> 7. You will have to charge AP invoices to profit centers directly. The
best
> approach is to have the account coding automatically flow from the
purchase
> requisition, to the PO, and then to the invoice. Remember, the overhead
that
> you incur in AP is applied to profit centers through your overhead rates.
> Any variance between incurred and applied should flow to your profit
center
> P&L's.
>
> 8. Don't forget to set up G/L interface rules in COM. Recording both sales
> and cost of sales from COM gives you more ways to match revenue and cost.
>
> 9. If you want decent looking P&L's, you need either FRx, ControllerVision
> or a ton of Excel spreadsheets.
>
> By the way, I have written three books that might help--"General Ledger
> Interfaces Book", "Cost Accounting Happens In MAPICS" and "FRx for
> Accountants".  You can order them from www.tenneypubs.com.
>
> Bob Tenney
> Bob Tenney Solutions, LLC
> MAPICS - FRx - Presence - Crystal Reports
> 828-526-8976
>
> ----- Original Message ----- 
> From: "meyno" <meyno@xxxxxxxxxxxxxxxxxx>
> To: "MAPICS-L SUBMIT" <MAPICS-L@xxxxxxxxxxxx>
> Sent: Thursday, August 21, 2003 4:51 PM
> Subject: Looking for ideas
>
>
> > We are going to set up profit centers in our manufacturing area.  Looks
> like
> > we definitely want to use the accounting class in the item rev file.
> >
> > Is any one using this field? All AP & PR are also going to the profit
> > center.  We want a P& L statement at the end of the month.
> >
> > Is the accounting class in the inventory transaction file?
> >
> > To all,,,,,Thanks, ahead of time.
> >
> > _______________________________________________
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>
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