Enhacement Request - Receipt from Manufacturing Costs

Stuart,

We are also on 6.1. Since they won't be "enhancing" 6.1 anymore, my
request is for version 8.

Please call support and add your company to the enhancement request.
Request no.: 22090MPS

Thanks,

Doug

--- In vantage@yahoogroups.com, "Stuart Noble" <stuart@...> wrote:
>
> Doug,
>
> I find the logic with partial job completion is flawed also. We are
> currently forced to use standard cost, instead of our preferred
path of
> Last Cost, for the very reason you have outlined. Did you lodge an
> enhancement request? We are on 6.1, so the problem is a carryover
from
> this version.
>
> Does the enhancement request also apply to 6.1 or do we have to
lodge
> another do you think?
>
> Cheers
>
>
>
> Stuart Noble
> Thompson Meat Machinery
> stuart@...
> Ph: 61 7 3803 6643
>
> -----Original Message-----
> From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On
Behalf
> Of Doug Oswald
> Sent: Tuesday, 26 September 2006 11:31 PM
> To: vantage@yahoogroups.com
> Subject: [Vantage] Re: Receipt from Manufacturing Costs...
Enhacement
> Request
>
>
>
> Be careful with this.
>
> You will see some unexpected results.
>
> See the enhancement request below. It really only applies if you
> are partially completing and receiving to inventory quantities
less
> than the production quantity.
>
> We recently moved from auto-receive to receipt from manufacturing.
> I would not recommend auto-receive. With auto-receive turned on,
> the inventory can only be placed into one warehouse from that job.
> I am not sure of your company's process, but you should try this
for
> a few parts in a training situation first.
>
> Doug Oswald
> MIS
> FLEETWOOD
>
> Summary: JM Partially completed job the Last Cost of the part is
> elevated
> Book: Change Requests
> Request no.: 22090MPS
>
> Description / Steps to reproduce:
>
> PROBLEM DESCRIPTION:
> JM Partially completed job the Last Cost of the part is elevated
> During the job process, if all materials and a majority of labor
is
> applied to earlier operations and you partially complete the job
(2
> out of 45 for example) the LAST cost of the part is extremely
> elevated. (see example below)
>
> The suggestion here would be to create logic that would at the
very
> least take a partial amount of material issued based on the
> qty/parent and the partial qty completed. Advanced logic would
> check to see if the previous operations were marked complete. If
the
> previous operation(s) is marked complete take the ratio (completed
> qty/production qty) of labor applied to that operation and add
that
> to the cost.
>
> PURPOSE:
>
> The problem that user are experiencing is that it seems the ratio
of
> completed items calculation is not working correctly.
>
> I can give an example that caused our on-hand inventory valuation
to
> be significantly incorrect.
>
> Example:
>
> Job for 45 doors.
> Material issued to job includes a door with frame and some
molding.
> Labor applied to job includes hours to each operation. 2 doors are
> completed and received from manufacturing. The cost of these
doors -
> $5700 each!!! Real cost is obviously much lower. This makes our
> inventory valuation too high. We use last cost so all doors in
> inventory are now worth $5700. As we completed the rest of the job
> the last door was worth $911.
>
> VERSION:
> 8.00.809C
>
>
>
>
>
> [Non-text portions of this message have been removed]
>
We are moving from a "ship from job" system to a "ship from stock"
system. We plan on using the "auto-receive from inventory" to force
the receipt upon completion of the final operation.

I'm trying to find the formula that Vantage will use to calculate unit
cost (we use the average costing method).

It is my assumption that Vantage sums the total costs per operation
divided by the completed quantity for each operation.

Operation 1 Costs/Completed Qty +
Operation 2 Costs/Completed Qty +
Operation 3 Costs/Completed Qty =
Unit price

Is this correct? I'm wondering how incorrect labor entry quantities
(from the shop floor) will effect my unit costs. Also, what do people
do when the total cost of a job is $1,000 but only $998 of inventory
is received to stock?

Any help is appreciated.

Thanks,

Kelly
Be careful with this.

You will see some unexpected results.

See the enhancement request below. It really only applies if you
are partially completing and receiving to inventory quantities less
than the production quantity.

We recently moved from auto-receive to receipt from manufacturing.
I would not recommend auto-receive. With auto-receive turned on,
the inventory can only be placed into one warehouse from that job.
I am not sure of your company's process, but you should try this for
a few parts in a training situation first.

Doug Oswald
MIS
FLEETWOOD

Summary: JM Partially completed job the Last Cost of the part is
elevated
Book: Change Requests
Request no.: 22090MPS

Description / Steps to reproduce:

PROBLEM DESCRIPTION:
JM Partially completed job the Last Cost of the part is elevated
During the job process, if all materials and a majority of labor is
applied to earlier operations and you partially complete the job (2
out of 45 for example) the LAST cost of the part is extremely
elevated. (see example below)

The suggestion here would be to create logic that would at the very
least take a partial amount of material issued based on the
qty/parent and the partial qty completed. Advanced logic would
check to see if the previous operations were marked complete. If the
previous operation(s) is marked complete take the ratio (completed
qty/production qty) of labor applied to that operation and add that
to the cost.

PURPOSE:

The problem that user are experiencing is that it seems the ratio of
completed items calculation is not working correctly.

I can give an example that caused our on-hand inventory valuation to
be significantly incorrect.

Example:

Job for 45 doors.
Material issued to job includes a door with frame and some molding.
Labor applied to job includes hours to each operation. 2 doors are
completed and received from manufacturing. The cost of these doors -
$5700 each!!! Real cost is obviously much lower. This makes our
inventory valuation too high. We use last cost so all doors in
inventory are now worth $5700. As we completed the rest of the job
the last door was worth $911.


VERSION:
8.00.809C
Doug,

I find the logic with partial job completion is flawed also. We are
currently forced to use standard cost, instead of our preferred path of
Last Cost, for the very reason you have outlined. Did you lodge an
enhancement request? We are on 6.1, so the problem is a carryover from
this version.

Does the enhancement request also apply to 6.1 or do we have to lodge
another do you think?

Cheers



Stuart Noble
Thompson Meat Machinery
stuart@...
Ph: 61 7 3803 6643

-----Original Message-----
From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
Of Doug Oswald
Sent: Tuesday, 26 September 2006 11:31 PM
To: vantage@yahoogroups.com
Subject: [Vantage] Re: Receipt from Manufacturing Costs... Enhacement
Request



Be careful with this.

You will see some unexpected results.

See the enhancement request below. It really only applies if you
are partially completing and receiving to inventory quantities less
than the production quantity.

We recently moved from auto-receive to receipt from manufacturing.
I would not recommend auto-receive. With auto-receive turned on,
the inventory can only be placed into one warehouse from that job.
I am not sure of your company's process, but you should try this for
a few parts in a training situation first.

Doug Oswald
MIS
FLEETWOOD

Summary: JM Partially completed job the Last Cost of the part is
elevated
Book: Change Requests
Request no.: 22090MPS

Description / Steps to reproduce:

PROBLEM DESCRIPTION:
JM Partially completed job the Last Cost of the part is elevated
During the job process, if all materials and a majority of labor is
applied to earlier operations and you partially complete the job (2
out of 45 for example) the LAST cost of the part is extremely
elevated. (see example below)

The suggestion here would be to create logic that would at the very
least take a partial amount of material issued based on the
qty/parent and the partial qty completed. Advanced logic would
check to see if the previous operations were marked complete. If the
previous operation(s) is marked complete take the ratio (completed
qty/production qty) of labor applied to that operation and add that
to the cost.

PURPOSE:

The problem that user are experiencing is that it seems the ratio of
completed items calculation is not working correctly.

I can give an example that caused our on-hand inventory valuation to
be significantly incorrect.

Example:

Job for 45 doors.
Material issued to job includes a door with frame and some molding.
Labor applied to job includes hours to each operation. 2 doors are
completed and received from manufacturing. The cost of these doors -
$5700 each!!! Real cost is obviously much lower. This makes our
inventory valuation too high. We use last cost so all doors in
inventory are now worth $5700. As we completed the rest of the job
the last door was worth $911.

VERSION:
8.00.809C





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