Has anyone moved from avg cost to standard cost? If so how difficult was it and how long did it take. Thanks.
Welcome!
A few years ago (before Kinetic), I did some tests in our pilot database using DMT. The process is to quantity adjust your parts out of inventory, then change the costing method, then quantity adjust the parts back in to the same location. Using DMT with 10k parts, this took all weekend. I think I could have sped it up if I used the maximum DMT processors (3 in our case), and breaking up the files into smaller chunks of only a 2k rows or so.
DMT works well for this, if your files are clean. Test in pilot first to catch all the weird issues that will come up. If you can’t test twice in a row in pilot and get the same results, then keep practicing and refining your process. Only when you are confident in your process should you attempt this on live. Even then, pick a quiet weekend, and give yourself plenty of extra time for issues. Good luck!
You will also need to take into account inventory that is staged, picked, etc. as part of the quote to cash process, as well as consider implications regarding Lot level details (you’ll lose Lot level costing maybe).
If there are materials that have been issued to jobs, but will be returned in some qty, you’ll need to deal with those separately.
And this will generate (potentially) a GL entry with a huge swing in inventory value. Make sure you are prepared for that and retain all of the necessary documentation in case the auditors want it If you have audits!)
Do you already have your new Standard Cost values determined? Have you done a Cost Rollup to see if you’re actually getting values properly at the Job Receipt to Inventory transactions? Do you have a process for rolling your costs on some kind of basis? Have you tested this in your PILOT environment?
The actual “movement” from one method to another is (as @NateS describes) relatively straightforward. It’s the rest of it all that really takes the effort.
