[SYS21] Re: Conversion from FIFO costing to Standard costingmethod...

Jeff,

We changed methods from FIFO to Standard for our Finished Goods Inventory.
You have described, almost word for word, the process we used.  Everything
went very smoothly.  The only problem with using standard costing is on
purchased items where your standard cost may change between the time you
purchase receive an item and when you actually pay for the item.  This
situation will cause your stock accrual to accrue at one standard (at time
of receipt)  and relieve at another standard (when invoice is paid.)

Anthony Moore
Sara Lee Foods
West Point, MS





"Jeff Klipa" <jklipa@xxxxxxxxxxx>@midrange.com on 03/17/2003 08:38:22 AM

Please respond to GEAC/JBA System 21 Users <jbausers-l@xxxxxxxxxxxx>

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cc:
Subject:    [SYS21] Conversion from FIFO costing to Standard costing
       method...



Has anyone ever changed their costing method from FIFO to Standard...?
If so would you be willing to share your experience...
We're considering makeing this change for one of our product lines...
Just looking for pitfalls...

Here is our potential plan of attack...:

Check that they have the correct standard costs in cost sets, stockrooms,
and landed cost.  Correct if necessary.
Change AFI Rules to be the same as other parts using Standard.
Change Costing Method on Item Master.
Run custom report for Inventory at Standard Cost.  Verify correct costs.
Adjust ledger inventories to reports.
After a short period, check that Inventory at Standard Cost and ledger
inventories still agree.

Can anyone think of anything else...

Thanks in advance for your input.



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