Extract from previous post from myself. Hope this helps
First and foremost, are you using MES live?
If so are employees filing all required fields properly when closing ending an
activity.
The allocation of costs for a given operation in average mode, is base on actual
costs for a given operation divided by number of completed quantity at this
operation. (Completed qty is the reported qty from an employee in MES when
closing the activity, not all qty may yet be completed, some operations can
lasts for a certain periode of time). Vantage repeats this calculation for every
operation.
Same applies to material, Actual material pulled against required is used to
allocate a portion of the material costs to the qty reported to inventory.
So if for a given Work Order you have several transaction to stock, you might
get various average cost used in part tran for each individual transaction.
Hope this helps,
I find the average calculation used in vantage a little bizarre, I much prefer
transaction reported to inventory based on Estimated unit costs. They are by far
much simpler to track down, as amounts used to report qties to inventory are
based on the estimated unit costs of the Work Order. This is simple and
efficient. Key here is to then monitor variances to estimate on a timely manner
and investigate if variance are due to incorrect BOMs and Routing, or efficency
production on the floor. Wish they will go this way On Epicor 9.
BTW we are using std costs, as we did not like the average cost behavior of
vantage, requiring a lot of discipline from shop floor employees to proprely
reports qty completed and so on.
Ben.....
First and foremost, are you using MES live?
If so are employees filing all required fields properly when closing ending an
activity.
The allocation of costs for a given operation in average mode, is base on actual
costs for a given operation divided by number of completed quantity at this
operation. (Completed qty is the reported qty from an employee in MES when
closing the activity, not all qty may yet be completed, some operations can
lasts for a certain periode of time). Vantage repeats this calculation for every
operation.
Same applies to material, Actual material pulled against required is used to
allocate a portion of the material costs to the qty reported to inventory.
So if for a given Work Order you have several transaction to stock, you might
get various average cost used in part tran for each individual transaction.
Hope this helps,
I find the average calculation used in vantage a little bizarre, I much prefer
transaction reported to inventory based on Estimated unit costs. They are by far
much simpler to track down, as amounts used to report qties to inventory are
based on the estimated unit costs of the Work Order. This is simple and
efficient. Key here is to then monitor variances to estimate on a timely manner
and investigate if variance are due to incorrect BOMs and Routing, or efficency
production on the floor. Wish they will go this way On Epicor 9.
BTW we are using std costs, as we did not like the average cost behavior of
vantage, requiring a lot of discipline from shop floor employees to proprely
reports qty completed and so on.
Ben.....
--- In vantage@yahoogroups.com, "Rob Bucek" <rbucek@...> wrote:
>
> I was in no way suggesting Vic adopt our method.. we've not seen any
> issues to date that we can ascertain with that method. I would say in
> our scenario, we are only doing that with a small number of parts and
> those are finished goods and not component level parts that are
> subsequently issued to other jobs as material. Whether or not that
> makes a difference, I do not know.
>
>
>
> Rob Bucek
>
> Production Control Manager
>
> PH: (715) 284-5376 ext 311
>
> Mobile: (715)896-0590
>
> FAX: (715)284-4084
>
> <http://www.dsmfg.com/>
>
> (Click the logo to view our site) <http://www.dsmfg.com/>
>
>
>
>
>
> From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
> Of schaeferaz
> Sent: Monday, March 21, 2011 9:29 AM
> To: vantage@yahoogroups.com
> Subject: [Vantage] Re: Lot Costing Method - How does it calculate FG$?
>
>
>
>
>
> Rob,
> I thought I was told once by a senior member of Epicor staff to not
> allow Inventory to go negative if you use Average cost. Could result in
> big time problems with your costs. It was some time ago, but in was
> ingrained into memory.
>
> Stephen
>
> --- In vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com> , "Rob
> Bucek" <rbucek@> wrote:
> >
> > Vic,
> >
> >
> >
> > Vantage, as far as costing goes, like it or not, evaluates inventory
> at
> > the time of transaction. Thus if you receive inventory from a job to
> > stock, it's going to roll up all costs existing thus far on the job
> and
> > evaluate the quantities received based on that. It works much the same
> > for average costing as well (which is what we use for inventory
> > evaluation). For this reason alone we have BPM's preventing receipt to
> > stock until the entire job is complete. There are negatives to both
> > scenarios and its more of a business decision I think as to how you
> want
> > to handle the realities. We've chosen to deal with negative on hand
> > inventories for short periods of time rather than inventory values
> that
> > could get significantly out of whack because of how product flows
> > through our facility...
> >
> >
> >
> > Rob Bucek
> >
> > Production Control Manager
> >
> > PH: (715) 284-5376 ext 311
> >
> > Mobile: (715)896-0590
> >
> > FAX: (715)284-4084
> >
> > <http://www.dsmfg.com/>
> >
> > (Click the logo to view our site) <http://www.dsmfg.com/>
> >
> >
> >
> >
> >
> > From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
> [mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com> ] On
> Behalf
> > Of Vic Drecchio
> > Sent: Sunday, March 20, 2011 3:34 PM
> > To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
> > Subject: [Vantage] Lot Costing Method - How does it calculate FG$?
> >
> >
> >
> >
> >
> > Hello!
> >
> > I'm curious if anyone knows much about the Lot Costing Method.
> >
> > What I'm curious about is how it handles the logic of moving dollars
> > from WIP into FG for partially completed Jobs.
> >
> > For example, if I have a Job for FIVE pieces and I complete and turn
> in
> > ONE piece of that job, I would think that it would move 1/5 of the
> costs
> > from WIP and into FG. But it seems it doesn't always work that way.
> >
> > Anyone have any thoughts?
> >
> > Thank you in advance.
> >
> > Vic
> >
> > [Non-text portions of this message have been removed]
> >
> >
> >
> >
> >
> > [Non-text portions of this message have been removed]
> >
>
>
>
>
>
> [Non-text portions of this message have been removed]
>