Re: Average Cost Help

["Bob Tenney" <bobtenney@xxxxxxxxxxxxx>]

Nandu, Sorry to be so late in joining the discussion.

The best way to solve this problem is to process the vendor's invoice
(assuming its correct) and let MAPICS automatically fix the problem. When
you enter the invoice,  IFM rejects it because the invoice and PO prices
disagree. Since the invoice is correct, you respond by entering an approval
line to force the invoice past IFM's edits. When IFM processes the
transaction it creates a negative CA transaction that causes IM to
recalculate the item's average cost.

Doing nothing works in all cases. But, you might get some surprising results
if you have issued the item from inventory after you entered the RP and
before you entered the CA. If this has happened, the quantities issued have
the overstated unit cost and the variance between the invoice and PO is
applied to the quantity remaining in stock when the CA is processed. If the
quantity in stock is zero, then MAPICS treats the invoice/PO difference as a
variance.


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: "Nandagopal Padmanabhan" <npadmanabhan@xxxxxxxxxxxxxx>
To: "MAPICS ERP System Discussion" <mapics-l@xxxxxxxxxxxx>
Sent: Tuesday, November 11, 2003 1:40 PM
Subject: Average Cost Help


> Hello Group,
> I have a situation here where the buyer had typed in an incorrect purchase
price on the PO. The actual average cost of the item is $20, but the
purchase price on the PO was incorrectly keyed in as $4300. Our warehouse
did an RP transaction after receiving the item and the average cost is all
messed up in the system as we had around qty 200 of that item (valued at
$20) prior to the RP transaction.
>
> Question: what do I do to fix the problem and correct the avg cost! Also,
what is the exact avg cost formula that MAPICS uses if a 15% overhead is
added. Let me know if more info is needed.
>
> Thanks,
> Nandu
>
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