Costing Methods

Yahoo Archive
1
E9.05.602A (implementation)



Hi, I'm looking for some advice on costing methods.



We would like to be able to do the following:



1. Capture the true costs in COS without using variance reports.

2. Update standard costs for manufactured items based on estimated
hours and material cost in BOM.



We are currently live on V6.1 and this does not present a problem as
manufactured parts are set to standard cost but when using make direct
the actual job costs are moved to COS.

The behaviour has been changed in E9 and the make direct option no
longer has the same effect. Any part set to standard cost will result in
a variance regardless of the transaction type.



There is probably an easy solution but I'm not seeing it.



Thanks

Chris


Chris HenzelEpicor 9 Project ManagerTel: +44 (0)1582 436150Mob: 07836 314164


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2
I though I saw a while back that someone was using a different costing
method for some items, maybe by part or group or class. Can anyone confirm
that you can use different costing methods vs. being tied to the one you
enter in the company config. Some of you may have noticed that accounting
is not my specialty. When we starting getting into costing and accounts my
brain exits...stage left. Any information would be appreciated.
Thanks,
Aaron Hoyt
Vantage Plastics
3
Aaron,

We use standard cost on our manufactured parts and we use Average Cost
on our purchased items. We are forced to do this as a result of the way
we manufacture and the way Vantage costs items at receipt from
manufacturing. We simply set the appropriate cost method in the Part
master.

Todd Hofert
IT Director
Spartan Graphics, Inc.


________________________________

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
Of Aaron Hoyt
Sent: Tuesday, February 21, 2006 8:36 AM
To: Vantage Group
Subject: [Vantage] Costing Methods


I though I saw a while back that someone was using a different costing
method for some items, maybe by part or group or class. Can anyone
confirm
that you can use different costing methods vs. being tied to the one you
enter in the company config. Some of you may have noticed that
accounting
is not my specialty. When we starting getting into costing and accounts
my
brain exits...stage left. Any information would be appreciated.
Thanks,
Aaron Hoyt
Vantage Plastics



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



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4
Thank you Todd,
I have been trying to work that out for several months. And there it was
right in front of me.
Aaron Hoyt
Vantage Plastics

-----Original Message-----
From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]On Behalf
Of Todd Hofert
Sent: Tuesday, February 21, 2006 8:44 AM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] Costing Methods


Aaron,

We use standard cost on our manufactured parts and we use Average Cost
on our purchased items. We are forced to do this as a result of the way
we manufacture and the way Vantage costs items at receipt from
manufacturing. We simply set the appropriate cost method in the Part
master.

Todd Hofert
IT Director
Spartan Graphics, Inc.


________________________________

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
Of Aaron Hoyt
Sent: Tuesday, February 21, 2006 8:36 AM
To: Vantage Group
Subject: [Vantage] Costing Methods


I though I saw a while back that someone was using a different costing
method for some items, maybe by part or group or class. Can anyone
confirm
that you can use different costing methods vs. being tied to the one you
enter in the company config. Some of you may have noticed that
accounting
is not my specialty. When we starting getting into costing and accounts
my
brain exits...stage left. Any information would be appreciated.
Thanks,
Aaron Hoyt
Vantage Plastics



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



This e-mail and any attachments may contain confidential and privileged
information. If you are not the intended recipient, please notify the
sender immediately by return e-mail, delete this e-mail and destroy any
copies. Any dissemination or use of this information by a person other
than the intended recipient is unauthorized and may be illegal.

[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
5
We are currently using average costing, but I would like to revisit
this. We are a national sign manufacturer that is part job shop -
part recurring jobs. Can I get some feeback as to some of the pro's
and con's accociated with each costing method (average, standard, and
last). If I remember correctly, the conversion from average to
standard isn't all that painful. For a fee, Epicor will write a
routine to remove all of the inventory at average and put it back in
at standard which eliminates a lot of the data entry.

We are on v8.0 going to v8.03.

Thoughts, comments, questions, concerns?

Jennifer Mesiano
Walton Signage
IT Manager
6
We switched from Avg to Std costing as part of our implementation to
V8.0 and went live this past January. There have been quite a few
issues that we didn't anticipate. There are pros and cons to each
system that are very clear now.

The Avg costing is very easy. The costs get updated auto-magically
with every transaction. Which quickly becomes apparent is also the
big downside. Trying to back out some transactions is impossible. So
when (not if) mistakes are made, it's very messy to try to clean up
afterward. This is what prompted us to change.

Std costing is just the opposite. Everything can go in and out at the
same standard cost so it's very easy to clean up mistakes. However,
it takes a lot more effort to update costs and keep abreast of what's
going on since you no longer directly see the variances. You have to
make sure all of your engineering is perfect and your Vantage setup is
perfect (resource groups, operations, etc) to get the cost rolls to
come out properly. Additionally, there is a lot more reporting to
keep up with (variances) and some reinvention of the wheel is
required. For example, your Sales Gross Margin report now show
standard costs instead of actual so it's pretty much useless. Also,
you have to be very careful to add standard costs for new parts (both
purchase and manufactured). If not, these parts get transacted as "free".

So all in all, I would hardly call it an easy transition and would say
you better be prepared before switching. I don't want to scare you
off standard but just let you know some of the challenges we are facing.

We haven't tried last costing so I would be curious to hear how that
works out and why people use it. Maybe it's the best of both worlds?

Best of luck.



--- In vantage@yahoogroups.com, "Jennifer" <jmesiano@...> wrote:
>
> We are currently using average costing, but I would like to revisit
> this. We are a national sign manufacturer that is part job shop -
> part recurring jobs. Can I get some feeback as to some of the pro's
> and con's accociated with each costing method (average, standard, and
> last). If I remember correctly, the conversion from average to
> standard isn't all that painful. For a fee, Epicor will write a
> routine to remove all of the inventory at average and put it back in
> at standard which eliminates a lot of the data entry.
>
> We are on v8.0 going to v8.03.
>
> Thoughts, comments, questions, concerns?
>
> Jennifer Mesiano
> Walton Signage
> IT Manager
>
7
Jennifer, We too are using Avg. Costing and thinking of revisiting this ourselves. The problem for us is that we may have parts that we buy from multiple vendors at different costs and it averages the cost of inventory as soon as PO receipts are done. Also at job costing is where you see the biggest impact. As avg. costing is costed continually on existing counts of inventory, you will see that multiple jobs with the same qtys may be costed differently depending on your unit cost per part.


----- Original Message ----
From: Jennifer <jmesiano@...>
To: vantage@yahoogroups.com
Sent: Friday, July 27, 2007 3:07:00 PM
Subject: [Vantage] Costing Methods

We are currently using average costing, but I would like to revisit
this. We are a national sign manufacturer that is part job shop -
part recurring jobs. Can I get some feeback as to some of the pro's
and con's accociated with each costing method (average, standard, and
last). If I remember correctly, the conversion from average to
standard isn't all that painful. For a fee, Epicor will write a
routine to remove all of the inventory at average and put it back in
at standard which eliminates a lot of the data entry.

We are on v8.0 going to v8.03.

Thoughts, comments, questions, concerns?

Jennifer Mesiano
Walton Signage
IT Manager






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