Costing Avg and Std

Larry,

About a year and a half ago we changed from average to standard. A
few things to keep in mind.

1. Yes, job variance will now become an issue, but it's key for
anyone that analyzes job costing.

2. Cost roll ups will need to happen on a regular basis. When a
method is created or changed in any way that effects costing (ie:
rate, workcenter, or operation changes), you will have to perform a
cost rollup which will update the standard cost. We have an email
alert that notifies accounting whenever a new revision is checked
in. This is the signal that the job will probably need to be rolled
up. You could also add this as a task to your normal ECR/ECN flow.
Whichever works best for you.

3. Raw Material costs will have to be maintained (through "Standard
Cost Adjustment"). Our brass material usually increases each month,
which means we have to make sure that it's updated in Vantage.

3. When the time comes for the change over, you'll need to take out
all inventory at average cost, change the costing method, and then
put the inventory back in at standard. This would require a lot of
data entry. Unless you don't have anything else to do with your
time, I would recommend using the utility available from Epicor that
will do this for you. Of course it's not free.

Jennifer Mesiano
DuPAGE Machine Products

--- In vantage@yahoogroups.com, Larry Barriere <larrybarriere@...>
wrote:
>
> We do average costing. We would like to changes some of the
production parts to standard costing.
> Would anyone be able to tell me what the effect would be. I know
that it would create a variance for jobs but what other problem would
we run into.
> Thank you
> Larry B
> barriere@...
>
>
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We do average costing. We would like to changes some of the production parts to standard costing.
Would anyone be able to tell me what the effect would be. I know that it would create a variance for jobs but what other problem would we run into.
Thank you
Larry B
barriere@...


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