We are considering running a hybrid of Ave cost for Purchased Mtl and Std cost for Mfg parts.
Has anyone implemented this ? What are some of the gottcha’s ?
We are currently running Std cost on everything now and I did notice that parts that are order to a job dont seem to get calculated in the Average ( a lot of 0 Ave costs for parts that typically go direct to a Subcontract job.
I understand that to make the change, Parts need to be Stock adjusted out ( DMT is my friend) , part changed to Ave cost method , then DMT’d back in.
Average cost is only updated when parts hit inventory (showing up on the Stock Status). Any buy-direct type transactions will not update the average.
We used Average for raw materials and Standard for manufactured parts up until last year. It worked well, usually. But if a price was incorrect on a PO or quantities were transacted out of order, it usually left costs in the wrong places. We moved to standard for raw material so any issues in pricing or materials needing to be backed out to fix something on the PO wouldn’t affect us as much. We also were already setting a “standard” for raw materials for our cost rolls so our management decided to just use standard for everything.
Hi Tyler,
Did you ever use the Costing Workbench to roll up costs for Finished goods ?
If so, how did the raw mtl costs roll through ?
We have parts that we buy un-painted then Subcontract them out to be painted.
Yes, we use the Costing Workbench to roll quarterly with all the price fluctuations in steel and other metals.
When our raw materials were still Average cost, we would use a Cost Adjustment DMT to set Standard costs on the raw materials based on our forecasts from vendors and historical prices (essentially, “What do we want to use as our price for these materials for our cost roll”). When you Get Details in the workbench, you have the option to pull Standard costs even for average costed materials. This let us use that set “standard” cost even though our materials were still at average.
Im thinking that is going to be my pain point. Some items never make it into inventory, go straight into the SubContract job ( to Paint ) I would be rolling 0 Mtl cost items into finished painted part…Arggg
Currently attempting same thing. AVG for Purchase and STD for Manufactured. Issue having is stock status will not show any items that on average. Company Config is STD. Did Cost Adjustment and added all costs in Average data fields for parts changing to Average. Also attempted a Qty Adjustment and items that have average do not show on Inventory/Wip recon. But STD value items do appear.