One-Time-Buy Blank Title 71316

Yahoo Archive
1
Nice in theory - but I've never met an auditor that wouldn't raise unwanted red flags at the process. It smacks a little too much like cooking the books and just isn't worth it.

Rob





--- On Tue, 11/25/08, Scott Litzau <scott.litzau@...> wrote:
From: Scott Litzau <scott.litzau@...>
Subject: RE: [Vantage] One-Time-Buy
To: vantage@yahoogroups.com
Date: Tuesday, November 25, 2008, 10:31 AM











When you purchase direct all the costs do go to the Job.



If you wish to also save any remaining material you have two choices.



1. Place it in Inventory and have a Std Cost of $0 so you are not valuing

the material twice.



2. Create a Non-Nettable Bin and place . Non-Nettable, even if it has a Std

Cost, states that it has a On Hand Qty of 0. This can get a little tricky

because though you see the Qty in Part tracker when you look at Transaction

History it does not add to Running Total so it all how you look at it. If

you run a Stock Status report you have the option to include Non-Nettable or

not so when running this report make sure you know how it was run (options

do show at top of report).



Scott Litzau, MCP

Olympus Flag & Banner

Information Systems Manager

scott.litzau@ olympus-flag. com

P:

F:



-----Original Message-----

From: vantage@yahoogroups .com [mailto:vantage@yahoogroups .com] On Behalf Of

bpbuechler

Sent: Tuesday, November 25, 2008 8:59 AM

To: vantage@yahoogroups .com

Subject: [Vantage] One-Time-Buy



We have circumstances where we need to purchase a part specifically for

a job (direct purchase) that will never get used again. We end up not

using the entire qty on the job that was purchased and received. Our

Finance team wants to leave the cost on the job and our Inventory team

struggles with disposing of the leftovers.



Any suggestions on how to bridge this battle?



TIA

Patty Buechler



------------ --------- --------- ------



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/ linksYahoo! Groups Links
2
We have circumstances where we need to purchase a part specifically for
a job (direct purchase) that will never get used again. We end up not
using the entire qty on the job that was purchased and received. Our
Finance team wants to leave the cost on the job and our Inventory team
struggles with disposing of the leftovers.

Any suggestions on how to bridge this battle?

TIA
Patty Buechler
3
This is analogous to our situation where we over run custom made parts just incase of quality drop outs and cost everything to the job. But we keep the parts for awhile at zero cost incase the customer runs over a box with a forklift and calls for a few more. We have to cost it all to the job because there is no certainty we will ever sell the extras. If we do though the margin is outstanding! I'm no bean counter but think there is probably a GAAP rule about likely unsellable material (or parts) that your finance people are following...at the very least carrying it only at scrap metal price and costing the difference to the job. If it is a manufactured and somewhat common part that can be used by others there may be a market value on eBay for disposal greater than scrap prices in which case the difference between that the the purchase price would go to the job. I think. Probably depends a lot on the cost of the extra parts and if disposal is worth the time cost.
-Todd C.

________________________________
From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of bpbuechler
Sent: Tuesday, November 25, 2008 8:59 AM
To: vantage@yahoogroups.com
Subject: [Vantage] One-Time-Buy


We have circumstances where we need to purchase a part specifically for
a job (direct purchase) that will never get used again. We end up not
using the entire qty on the job that was purchased and received. Our
Finance team wants to leave the cost on the job and our Inventory team
struggles with disposing of the leftovers.

Any suggestions on how to bridge this battle?

TIA
Patty Buechler





[Non-text portions of this message have been removed]
4
Over issue to the job (so the job reflects the full purchased/invoiced material cost as WIP consumed) and tell Operations to throw out the unused excess into the scrap bins.



--- On Tue, 11/25/08, bpbuechler <pbuechler@...> wrote:

From: bpbuechler <pbuechler@...>
Subject: [Vantage] One-Time-Buy
To: vantage@yahoogroups.com
Date: Tuesday, November 25, 2008, 9:59 AM






We have circumstances where we need to purchase a part specifically for
a job (direct purchase) that will never get used again. We end up not
using the entire qty on the job that was purchased and received. Our
Finance team wants to leave the cost on the job and our Inventory team
struggles with disposing of the leftovers.

Any suggestions on how to bridge this battle?

TIA
Patty Buechler
5
I agree with the finance team - the cost should be left on the job. I guess
I don't understand what the inventory team is struggling with. Throwing the
leftovers in the trash barrel? We often do the same direct purchases of
parts that will "never get used again" and have leftovers. Typically the
leftovers end up in someone's hands and, not too often but sometimes,
resurface at a later date with the question, "How do I get this material to
the (new) job?" The accountants really love that!






_____

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of
bpbuechler
Sent: Tuesday, November 25, 2008 9:59 AM
To: vantage@yahoogroups.com
Subject: [Vantage] One-Time-Buy

We have circumstances where we need to purchase a part specifically for
a job (direct purchase) that will never get used again. We end up not
using the entire qty on the job that was purchased and received. Our
Finance team wants to leave the cost on the job and our Inventory team
struggles with disposing of the leftovers.

Any suggestions on how to bridge this battle?

TIA
Patty Buechler



[Non-text portions of this message have been removed]
6
When you purchase direct all the costs do go to the Job.

If you wish to also save any remaining material you have two choices.

1. Place it in Inventory and have a Std Cost of $0 so you are not valuing
the material twice.

2. Create a Non-Nettable Bin and place . Non-Nettable, even if it has a Std
Cost, states that it has a On Hand Qty of 0. This can get a little tricky
because though you see the Qty in Part tracker when you look at Transaction
History it does not add to Running Total so it all how you look at it. If
you run a Stock Status report you have the option to include Non-Nettable or
not so when running this report make sure you know how it was run (options
do show at top of report).

Scott Litzau, MCP
Olympus Flag & Banner
Information Systems Manager
scott.litzau@...
P: 414-365-9732
F: 414-355-1931


-----Original Message-----
From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of
bpbuechler
Sent: Tuesday, November 25, 2008 8:59 AM
To: vantage@yahoogroups.com
Subject: [Vantage] One-Time-Buy

We have circumstances where we need to purchase a part specifically for
a job (direct purchase) that will never get used again. We end up not
using the entire qty on the job that was purchased and received. Our
Finance team wants to leave the cost on the job and our Inventory team
struggles with disposing of the leftovers.

Any suggestions on how to bridge this battle?

TIA
Patty Buechler


------------------------------------

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/linksYahoo! Groups Links
7
We are a specialty shop here as well. We buy a lot of resources specific to a customer only. The remaining amount gets scrapped.
Â
How we justify it is by charging the customer for goods. If you do it any other way you will lose a boat load of money. Personally I couldn't give a damn how Inventory feels about business practice. They do as you tell them to do and move on.
Â
Jonathan LangÂ
Oil Rite Corporation
Sr. Network Administrator
Ph: (920) 682-6173 Ext: 126
Fax: (920) 682-7699

--- On Tue, 11/25/08, bpbuechler <pbuechler@...> wrote:

From: bpbuechler <pbuechler@...>
Subject: [Vantage] One-Time-Buy
To: vantage@yahoogroups.com
Date: Tuesday, November 25, 2008, 8:59 AM






We have circumstances where we need to purchase a part specifically for
a job (direct purchase) that will never get used again. We end up not
using the entire qty on the job that was purchased and received. Our
Finance team wants to leave the cost on the job and our Inventory team
struggles with disposing of the leftovers.

Any suggestions on how to bridge this battle?

TIA
Patty Buechler


















[Non-text portions of this message have been removed]
8
I'll start with this. If you say you'll never need it again, scrap
it. Seriously, throw it away. I know it's hard for some people to do
but why wrangle with extra inventories taking up space, maintaining
spreadsheet accounting, and other wasted efforts with items that will
never be used. Stop the pack rat mentality before it starts.

But if you really really must keep the parts, here are some options.
There's the what I like to call the "dumpster bin". Keeping the parts
but not maintaining them in inventory. Highly frowned upon I'm sure,
but it happens.

Or you can maintain the parts in inventory at zero cost. But again if
the material has no value, why keep it?

Or maintaining the inventory at some reduced value. Most the cost
will be material variance on the job but keep the parts at some
nominal inventory cost. Other than actually disposing of the
material, this would be my preference.



--- In vantage@yahoogroups.com, "bpbuechler" <pbuechler@...> wrote:
>
> We have circumstances where we need to purchase a part specifically for
> a job (direct purchase) that will never get used again. We end up not
> using the entire qty on the job that was purchased and received. Our
> Finance team wants to leave the cost on the job and our Inventory team
> struggles with disposing of the leftovers.
>
> Any suggestions on how to bridge this battle?
>
> TIA
> Patty Buechler
>
9
I understand that people want to get rid of excessive Inventory but why, if
you could use the material again at no cost (because the previous customer
paid for it), would you not want to use it and get even a more favorable
margin on the next Job, because you should have charged the next customer
the cost of the material that would be used.

Times being as they are any gain you can get, get it. Unless this material
is taking up an extremely excessive amount of space I say deal with it.

In our environment we have Non-Nettable Bin, handled by the system, and what
we call Short Term Bins, not handled by the system. Short Term Bins are bins
where material can stay for 30 days. This is to handle if the product sent
to the customer got damaged or they want another one of two right away we
can react, create the product and get it to the customer within that 30
days. After 30 days the material in the Short Term Bin is then truly but in
a dumpster.

Scott Litzau


-----Original Message-----
From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of
saab_barracuda
Sent: Tuesday, November 25, 2008 10:00 AM
To: vantage@yahoogroups.com
Subject: [Vantage] Re: One-Time-Buy

I'll start with this. If you say you'll never need it again, scrap
it. Seriously, throw it away. I know it's hard for some people to do
but why wrangle with extra inventories taking up space, maintaining
spreadsheet accounting, and other wasted efforts with items that will
never be used. Stop the pack rat mentality before it starts.

But if you really really must keep the parts, here are some options.
There's the what I like to call the "dumpster bin". Keeping the parts
but not maintaining them in inventory. Highly frowned upon I'm sure,
but it happens.

Or you can maintain the parts in inventory at zero cost. But again if
the material has no value, why keep it?

Or maintaining the inventory at some reduced value. Most the cost
will be material variance on the job but keep the parts at some
nominal inventory cost. Other than actually disposing of the
material, this would be my preference.



--- In vantage@yahoogroups.com, "bpbuechler" <pbuechler@...> wrote:
>
> We have circumstances where we need to purchase a part specifically for
> a job (direct purchase) that will never get used again. We end up not
> using the entire qty on the job that was purchased and received. Our
> Finance team wants to leave the cost on the job and our Inventory team
> struggles with disposing of the leftovers.
>
> Any suggestions on how to bridge this battle?
>
> TIA
> Patty Buechler
>



------------------------------------

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/linksYahoo! Groups Links
10
If you'll never use the part again and can't come to terms with
scrapping it then give it to your customer. It'll be good for customer
relations.



Mark D.



________________________________

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
Of bpbuechler
Sent: Tuesday, November 25, 2008 9:59 AM
To: vantage@yahoogroups.com
Subject: [Vantage] One-Time-Buy



We have circumstances where we need to purchase a part specifically for
a job (direct purchase) that will never get used again. We end up not
using the entire qty on the job that was purchased and received. Our
Finance team wants to leave the cost on the job and our Inventory team
struggles with disposing of the leftovers.

Any suggestions on how to bridge this battle?

TIA
Patty Buechler


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