We have two sites and we are average cost. One part has sneaked in where cost in MfgSys = AVG but in the other site it is STD. A transfer order done 14th APR is now causing a review journal to be created with a variance of the cost of the part. Any ideas how to correct?
Thanks
To change the cost method, you need to take all the stock out first (qty adjustment -). Once you set the cost method you want, you can put the stock back in (qty adjustment +).
Not sure about the review journal you have there - see if you can reverse/delete that transaction in question. If not, you will have to go on with it and then probably add a manual journal to correct your GL accounts. I’m thinking if you haven’t used the STD cost method before, maybe you’re missing a few accounts in your GL controls, and that’s why it is in review.
you probably dont have the transfer accounts setup for the sites… there is a place to enter the GL account that will be hit when there is a variance in cost between two Sites. Once you define those, then you should not have anything in the review journal.
Also note that you will only see the variance when moving inventory from the AVG site to the STDCost site. When moving inventory from STD to AVG, then the system simply does average cost calculations on the incoming inventory and sets a new average.
You need to create a new GL Control code for each plant transaction (plant 1 to plant 2, Plant 2 to plant 1) to specify the variance account: Note that the variance account applies to the “TO” account.
THEN in Site Config Maintenance, you need to apply the GL Control to the Sites
Thanks for this Tim. We’re currently taking a backup of LIVE to place into TEST where we can play with this.
That was it Tim. We’ve been live for 3 months and first time we’ve hit this. Guess full credit to the team setting up the parts and we’ve been lucky we’ve not transferred any other faulty parts between the two sites. Now the capture runs we’re going to get through month end and then setup a new account to place any variance and proactively target all parts that could cause a future issue.
I love it when we can diagnose a problem based on the facts presented in the initial question. You clearly stated the problem and did not fall into the trap of asking the wrong question (see XY Problem )
