Convoluted Mess

Dick-

I realize I'm a little slow, but here is what we do:

First, our two "divisions" are set up as two separate companies within
our Vantage database (IL is the consumer and IN is the producer as far
as I/C transactions are concerned).

1. IL creates a P.O. (without cost) and jobs (parts to be received
directly to the applicable jobs) and sends it to IN
2. IN creates a S.O./job travelers and schedules the jobs
3. IN makes parts, ships to IL creating a BOL/Pack Slip & invoice for
$0 (leaves un posted)
4. Once all labor is input, IN reviews the Production Detail reports
and calculates IN's actual per unit cost
5. IN then goes back into the I/C invoice(s) and inputs actual costs
6. IL waits to receive the shipment into Vantage until final costed
invoice is received (ideally a 24 hr. delay)
7. Once final costed invoice is received, IL goes back into original
P.O. and inputs actual price, then receives in the material to the job
8. IN invoice is then posted
9. At month end, I will adjust off all the IN invoices created -
charging the amounts to Material Variance for the IL division.
10. Also at month end, I will print the summary of the GM report for IL
and create a manual entry to back out the I/C sales and its related
costs of goods sold
11. Finally also at month end, on the IL company, I create a dummy
payables invoice for an amount equal to the amount of goods received
from IN but not invoiced (per the Received but Not Invoiced report) - in
a perfect world, this should equate to the dollar value of IN invoices
adjusted off in step #9.
12. I then adjust off this dummy payables invoice and charge it to the
Material Variance for the IL division.

Let me know if you have any questions - rickl@... or (260)
665-2158 x25. This system works O.K. and accurately passes on the
actual cost incurred; however, if I had my way about it, since we sort
of already treat IL division as a customer, we should quote their jobs
(with no markups) and give then a quoted price (obviously a little cost
difference would occur, but since this is really an I/C transaction,
minor differences are no big deal). That way, they could enter the
price as they create their P.O. and would not have the extra work/delays
when material is received (IN would have a little bit of extra work in
quoting, but I believe that time could be saved by not having to create
a sales order from scratch - just pull from the quote). Originally used
an average cost of the first 3 shipments to set a cost, but as material
prices skyrocketed last year, IN was not passing all of its costs along
and I charged the difference to the IL variance (undervalued inventory
in the short-run).




Thanks!



Rick Ludwig



-----Original Message-----
From: PLAMAN DICK [mailto:dick.plaman@...]
Sent: Friday, March 04, 2005 10:47 AM
To: vantage@yahoogroups.com
Subject: [Vantage] Convoluted Mess


I have a situation that is causing me to loose my few grey hairs:
Create a job that calls for material from another company division.
This material is requested on a PO from the originating division,
("purchased direct" on the job),
a SO is created for the inter-plant sale, and the material is shipped to
a Sub-Contractor for processing. Also a PO is cut for the
additional work from this Sub-Contractor.
The finance department is "backing-out" the material transaction from
the job because it is really only a material transfer. We
have not really purchased any material.
Our finished parts are going into stock at an undervalued cost as a
result.
Can someone enlighten me as to a possible solution to this that would
provide accurate costing information?

kind regards,



[Non-text portions of this message have been removed]



Useful links for the Yahoo!Groups Vantage Board are: ( Note: You must
have already linked your email address to a yahoo id to enable access. )
(1) To access the Files Section of our Yahoo!Group for Report Builder
and Crystal Reports and other 'goodies', please goto:
http://groups.yahoo.com/group/vantage/files/.
(2) To search through old msg's goto:
http://groups.yahoo.com/group/vantage/messages
(3) To view links to Vendors that provide Vantage services goto:
http://groups.yahoo.com/group/vantage/links



Yahoo! Groups Sponsor

ADVERTISEMENT

<http://us.ard.yahoo.com/SIG=1292c24g8/M=298184.6018725.7038619.3001176/
D=groups/S=1705007183:HM/EXP=1110037649/A=2593423/R=0/SIG=11el9gslf/*htt
p://www.netflix.com/Default?mqso=60190075> click here

<http://us.adserver.yahoo.com/l?M=298184.6018725.7038619.3001176/D=group
s/S=:HM/A=2593423/rand=434356886>


_____

Yahoo! Groups Links


* To visit your group on the web, go to:
http://groups.yahoo.com/group/vantage/


* To unsubscribe from this group, send an email to:
vantage-unsubscribe@yahoogroups.com
<mailto:vantage-unsubscribe@yahoogroups.com?subject=Unsubscribe>


* Your use of Yahoo! Groups is subject to the Yahoo! Terms of
Service <http://docs.yahoo.com/info/terms/> .




[Non-text portions of this message have been removed]
I have a situation that is causing me to loose my few grey hairs:
Create a job that calls for material from another company division.
This material is requested on a PO from the originating division,
("purchased direct" on the job),
a SO is created for the inter-plant sale, and the material is shipped to
a Sub-Contractor for processing. Also a PO is cut for the
additional work from this Sub-Contractor.
The finance department is "backing-out" the material transaction from
the job because it is really only a material transfer. We
have not really purchased any material.
Our finished parts are going into stock at an undervalued cost as a
result.
Can someone enlighten me as to a possible solution to this that would
provide accurate costing information?

kind regards,



[Non-text portions of this message have been removed]
It looked like everything was crusing along fine until Finance got
involved. : )

Although Division A isn't selling the material to Division B for a
profit, the inter-plant sale should be the way to go. With zero
profit, it becomes a inter-plant "transfer" for your example. When
everything is said and done, Division A inventory will be less the
cost of the material and Division B inventory will be plus the cost
of the material and the cost of the subcontract operation.

Michael Randolph
Purchasing Manager
American Magnetics, Inc.


--- In vantage@yahoogroups.com, "PLAMAN DICK" <dick.plaman@T...>
wrote:
> I have a situation that is causing me to loose my few grey hairs:
> Create a job that calls for material from another company division.
> This material is requested on a PO from the originating division,
> ("purchased direct" on the job),
> a SO is created for the inter-plant sale, and the material is
shipped to
> a Sub-Contractor for processing. Also a PO is cut for the
> additional work from this Sub-Contractor.
> The finance department is "backing-out" the material transaction
from
> the job because it is really only a material transfer. We
> have not really purchased any material.
> Our finished parts are going into stock at an undervalued cost as a
> result.
> Can someone enlighten me as to a possible solution to this that
would
> provide accurate costing information?
>
> kind regards,
>
>
>
> [Non-text portions of this message have been removed]
Agreed. Give Finance the boot!
-----Original Message-----
From: ami_miker [mailto:michael.randolph@...]
Sent: Friday, March 04, 2005 1:25 PM
To: vantage@yahoogroups.com
Subject: [Vantage] Re: Convoluted Mess




It looked like everything was crusing along fine until Finance got
involved. : )

Although Division A isn't selling the material to Division B for a
profit, the inter-plant sale should be the way to go. With zero
profit, it becomes a inter-plant "transfer" for your example. When
everything is said and done, Division A inventory will be less the
cost of the material and Division B inventory will be plus the cost
of the material and the cost of the subcontract operation.

Michael Randolph
Purchasing Manager
American Magnetics, Inc.


--- In vantage@yahoogroups.com, "PLAMAN DICK" <dick.plaman@T...>
wrote:
> I have a situation that is causing me to loose my few grey hairs:
> Create a job that calls for material from another company division.
> This material is requested on a PO from the originating division,
> ("purchased direct" on the job),
> a SO is created for the inter-plant sale, and the material is
shipped to
> a Sub-Contractor for processing. Also a PO is cut for the
> additional work from this Sub-Contractor.
> The finance department is "backing-out" the material transaction
from
> the job because it is really only a material transfer. We
> have not really purchased any material.
> Our finished parts are going into stock at an undervalued cost as a
> result.
> Can someone enlighten me as to a possible solution to this that
would
> provide accurate costing information?
>
> kind regards,
>
>
>
> [Non-text portions of this message have been removed]





Useful links for the Yahoo!Groups Vantage Board are: ( Note: You must have
already linked your email address to a yahoo id to enable access. )
(1) To access the Files Section of our Yahoo!Group for Report Builder and
Crystal Reports and other 'goodies', please goto:
http://groups.yahoo.com/group/vantage/files/.
<http://groups.yahoo.com/group/vantage/files/.>
(2) To search through old msg's goto:
http://groups.yahoo.com/group/vantage/messages
<http://groups.yahoo.com/group/vantage/messages>
(3) To view links to Vendors that provide Vantage services goto:
http://groups.yahoo.com/group/vantage/links
<http://groups.yahoo.com/group/vantage/links>



Yahoo! Groups Sponsor

ADVERTISEMENT

<http://us.ard.yahoo.com/SIG=129er952q/M=298184.6018725.7038619.3001176/D=gr
oups/S=1705007183:HM/EXP=1110047130/A=2593423/R=0/SIG=11el9gslf/*http://www.
netflix.com/Default?mqso=60190075> click here

<http://us.adserver.yahoo.com/l?M=298184.6018725.7038619.3001176/D=groups/S=
:HM/A=2593423/rand=327075223>

_____

Yahoo! Groups Links


* To visit your group on the web, go to:
http://groups.yahoo.com/group/vantage/
<http://groups.yahoo.com/group/vantage/>


* To unsubscribe from this group, send an email to:
vantage-unsubscribe@yahoogroups.com
<mailto:vantage-unsubscribe@yahoogroups.com?subject=Unsubscribe>


* Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service
<http://docs.yahoo.com/info/terms/> .




[Non-text portions of this message have been removed]
You guys are forgetting that all the errors end up in their lap.

-----Original Message-----
From: Sherer, Rhonda [mailto:rhonda@...]
Sent: Friday, March 04, 2005 1:38 PM
To: 'vantage@yahoogroups.com'
Subject: RE: [Vantage] Re: Convoluted Mess



Agreed. Give Finance the boot!
-----Original Message-----
From: ami_miker [mailto:michael.randolph@...]
Sent: Friday, March 04, 2005 1:25 PM
To: vantage@yahoogroups.com
Subject: [Vantage] Re: Convoluted Mess




It looked like everything was crusing along fine until Finance got
involved. : )

Although Division A isn't selling the material to Division B for a
profit, the inter-plant sale should be the way to go. With zero
profit, it becomes a inter-plant "transfer" for your example. When
everything is said and done, Division A inventory will be less the
cost of the material and Division B inventory will be plus the cost
of the material and the cost of the subcontract operation.

Michael Randolph
Purchasing Manager
American Magnetics, Inc.


--- In vantage@yahoogroups.com, "PLAMAN DICK" <dick.plaman@T...>
wrote:
> I have a situation that is causing me to loose my few grey hairs:
> Create a job that calls for material from another company division.
> This material is requested on a PO from the originating division,
> ("purchased direct" on the job), a SO is created for the inter-plant
> sale, and the material is
shipped to
> a Sub-Contractor for processing. Also a PO is cut for the additional
> work from this Sub-Contractor.
> The finance department is "backing-out" the material transaction
from
> the job because it is really only a material transfer. We have not
> really purchased any material.
> Our finished parts are going into stock at an undervalued cost as a
> result.
> Can someone enlighten me as to a possible solution to this that
would
> provide accurate costing information?
>
> kind regards,
>
>
>
> [Non-text portions of this message have been removed]





Useful links for the Yahoo!Groups Vantage Board are: ( Note: You must have
already linked your email address to a yahoo id to enable access. )
(1) To access the Files Section of our Yahoo!Group for Report Builder and
Crystal Reports and other 'goodies', please goto:
http://groups.yahoo.com/group/vantage/files/.
<http://groups.yahoo.com/group/vantage/files/.>
(2) To search through old msg's goto:
http://groups.yahoo.com/group/vantage/messages
<http://groups.yahoo.com/group/vantage/messages>
(3) To view links to Vendors that provide Vantage services goto:
http://groups.yahoo.com/group/vantage/links
<http://groups.yahoo.com/group/vantage/links>



Yahoo! Groups Sponsor

ADVERTISEMENT

<http://us.ard.yahoo.com/SIG=129er952q/M=298184.6018725.7038619.3001176/D=gr
oups/S=1705007183:HM/EXP=1110047130/A=2593423/R=0/SIG=11el9gslf/*http://www.
netflix.com/Default?mqso=60190075> click here

<http://us.adserver.yahoo.com/l?M=298184.6018725.7038619.3001176/D=groups/S=
:HM/A=2593423/rand=327075223>

_____

Yahoo! Groups Links


* To visit your group on the web, go to:
http://groups.yahoo.com/group/vantage/
<http://groups.yahoo.com/group/vantage/>


* To unsubscribe from this group, send an email to:
vantage-unsubscribe@yahoogroups.com
<mailto:vantage-unsubscribe@yahoogroups.com?subject=Unsubscribe>


* Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service
<http://docs.yahoo.com/info/terms/> .




[Non-text portions of this message have been removed]



Useful links for the Yahoo!Groups Vantage Board are: ( Note: You must have
already linked your email address to a yahoo id to enable access. )
(1) To access the Files Section of our Yahoo!Group for Report Builder and
Crystal Reports and other 'goodies', please goto:
http://groups.yahoo.com/group/vantage/files/.
(2) To search through old msg's goto:
http://groups.yahoo.com/group/vantage/messages
(3) To view links to Vendors that provide Vantage services goto:
http://groups.yahoo.com/group/vantage/links
Yahoo! Groups Links