Off Topic - looking for a Financial Expert, especially in Work I

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From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of Karen Schoenung
Sent: Friday, April 22, 2011 2:00 PM
To: vantage@yahoogroups.com
Subject: [Vantage] Off Topic - looking for a Financial Expert, especially in Work In Process



We are looking for a Financial Expert, especially in the area of Work In Process. We have questions in the area of negative variances of actual accumulated costs over standard costs in WIP. We would like someone who is willing to answer a few questions initially, but there may be follow up questions. We want to find a resource who can suggest the best long term fix.

We have concerns with the valuation methodology that Epicor uses for WIP.

* There is currently no limit to the amount of cost that can be charged to an open job and thus no limit to the resultant WIP valuation. - Is there a way to "cap" the amount of cost/WIP valuation for an open job so it cannot exceed standard?
* Unfavorable labor charges to a job will actually increase the WIP value of the job (made worse by the multiplier effect cause by the 300% overhead) and create temporarily inflated profits until the job closes.
* There is currently no way to view the amount of cost/variance collected/accumulated by open jobs in detail, and thus no way to really anticipate what the variance will be when it closes.
* The current method allows costs to skip the period they are incurred in, and land in another period, distorting true profitability.

If anyone in the group is willing to answer some questions about these subjects, please contact me offline.

Thank you,
Karen Schoenung
Fisher Barton
kschoenung@...<mailto:kschoenung%40fisher-barton.com>



[Non-text portions of this message have been removed]
We are looking for a Financial Expert, especially in the area of Work In Process. We have questions in the area of negative variances of actual accumulated costs over standard costs in WIP. We would like someone who is willing to answer a few questions initially, but there may be follow up questions. We want to find a resource who can suggest the best long term fix.

We have concerns with the valuation methodology that Epicor uses for WIP.

• There is currently no limit to the amount of cost that can be charged to an open job and thus no limit to the resultant WIP valuation. – Is there a way to "cap" the amount of cost/WIP valuation for an open job so it cannot exceed standard?
• Unfavorable labor charges to a job will actually increase the WIP value of the job (made worse by the multiplier effect cause by the 300% overhead) and create temporarily inflated profits until the job closes.
• There is currently no way to view the amount of cost/variance collected/accumulated by open jobs in detail, and thus no way to really anticipate what the variance will be when it closes.
• The current method allows costs to skip the period they are incurred in, and land in another period, distorting true profitability.

If anyone in the group is willing to answer some questions about these subjects, please contact me offline.

Thank you,
Karen Schoenung
Fisher Barton
kschoenung@...