Re: Standard cost calculation from Landed Costs

We use Style so my apologies if your version is different. As far as I am
aware there is no link between the built up landed cost that can be viewed
in Item vendor profile and the standard cost on the stockroom balance
file. Usually there will be some correlation but the standard cost is
applied manually. In all the years I worked with standard cost in the
past, this was the value determined by the costing department to be the
best representation of the value of the goods taking into account many
factors. Often the standard cost would be different at some stockrooms
due to the logistics of getting inventory to that point. At one time
standards were changed annually so sometimes a provision for future price
increases was built in. Since moving to the US, I have seen standards
being changed more often and stricter rules applied.

As a result we built modifications whereby we can roll the standard cost
directly from the item vendor profile maintenance, complete with audit and
automatic INP95/96 postings and have all stockrooms carry the same
standard cost.


Richard Caldicott
Director of Implementations
& Efficiency
Tandy Brands Accessories
817-548-0090 extn 146



"Simon Sherwood" <simon@xxxxxxxxxxxxxxxxxxxxxxxxxxxx>
Sent by: system21-bounces@xxxxxxxxxxxx
10/09/2008 07:10 AM
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System 21 Users <system21@xxxxxxxxxxxx>


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Subject
Re: [SYSTEM21] Standard cost calculation from Landed Costs






Hi Lee

If you use Standard Costing, what you see is correct. When you are in
5/INM
and you enter F14, it will display the landed cost elements. Be careful,
because some could be compounded/price dependent, whereas others might not

be.

I have used landed costs extensively, both with Standard Costing and FIFO
and they always seem to work OK.

Please email direct if you have any further problems.

Kind regards

Simon Sherwood
----- Original Message -----
From: "Lee Greenwood" <leegreenwood@xxxxxxxxxxxxxxx>
To: <system21@xxxxxxxxxxxx>
Sent: Thursday, October 09, 2008 1:02 PM
Subject: [SYSTEM21] Standard cost calculation from Landed Costs

Hi,

We use landed costs at one of our companies which is something I have
never really experienced before. My understanding is that the Standard
Cost (shown in 5/INM), is made up from the Material Cost (from 5/INM) +
the landed costs which can be a fixed value, or a percentage of the
material cost.

If I do the calculation manually, I am seeing a different figure to what
is shown in 5/INM for the Standard Cost.

My question is, is my understanding of how the landed costs work
correct? If I am wrong could someone please explain how are where the
standard cost is calculated?

Thanks in adavnce,

Lee Greenwood
IT Manager - Titan Europe Plc

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