Item Card Setup
FIFO Costing Method is recommended for all items. Contact MDN if you prefer to use Standard Costing Method.
Display these 3 cost fields. Hide Capacity Base Cost and Material Base Cost.
Unit Cost Calculations
| Fields | Description |
|---|---|
| Standard Base Cost | Can be imported, entered manually, or updated by using the Standard Cost Worksheet |
| Average Base Cost | System calculated. Total Inventory Value / Quantity Base on Hand. Updated when posting beginning inventory and when new transactions are posted. |
| Last Invoiced Cost | Last posted purchase invoice cost or last output cost from Work Order. |
Unit Cost on Transactions
The table below describes how costs are calculated during various transactions.
| Transaction | Logic |
|---|---|
| Sales Line Unit Cost | Defaults to Average Base Cost * Conversion. If that is 0, Last Invoiced Based Cost * Conversion is used. If that is 0, the system defaults to Standard Base Cost * Conversion. |
| Whse. Shipment Line and Sales Invoice Line | Defaults to Sales Line Unit Cost. Updated by the system using the actual inventory layer's cost. |
| Purchase Line Cost | Best cost (lowest cost) from Purchase Price table is used. If there is no Purchase Price setup, Last Invoiced Base Cost * Conversion is used. |
| Work Order | Output Item's Unit Cost defaults to Last Invoiced Base Cost * Conversion. Updated by Adjust Cost routine after the Work Order is Finished, using the actual Material and Capacity costs. |
| Work Line | Average Base Cost * Conversion is used. Updated by Production Journal posting and when Adjust Cost routine is run. |
| Item Journal Line | Defaults to Average Base Cost * Conversion. If that is 0, Last Invoiced Base Cost * Conversion is used. |
Standard Cost Worksheet
Use it to mass update Standard Base Cost using Average Base Cost
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