Re: Limit Selective Cost Roll Up

Barb,

"We're required to do a standard and current cost roll up for new items, how did you handle new items?"

The buyers would manually enter the PO price, the current material content this level, and the unit cost default on new items during the set up process. I.T. would run weekly (Sunday evening) and occasional on-demand full current cost rolls (the newer iSeries systems have enough horsepower to make that an option that's not painful at all). The buyers had an in-house developed program on their menu that allowed on-demand (by item) synchronization of current to standard costs. We also had a version that would be run by the I.T. department (with authorization by the plant accountant) for all item type 3 and 4 items. We would usually be requested to run that special batch synch during times when costs were going ballistic on some commodoties (steel, for example).

Our company (at the time) used standard costing for their financials, so that was adequate. PPV was handled by comparing against current cost, however (we actually went back and forth on that, based on what our corporate accounting department would require).

However, it all comes down to accountability - if you can hold your people accountable, there's no reason you couldn't give the buyers cost roll capability for current cost rolls.

Dale "Cork" Gindlesperger
Senior Business Analyst