We also use average costing and discovered the same "zero cost"
transactions. With a new part, if you receive it into stock before all the
labor (and subcontract) transactions that produced it are processed the cost
will be wrong. What's worse (and even easer to do) is to "backflush" or
issue a stocked sub-component to another job (or ship it to a customer)
before it gets a cost established from a MFG-STK transaction.
These timing problems can play havoc with costs applied all the way down the
line. The only practical solution we've found was to establish and enter a
"starting point" cost when creating a new part. We're on average costing
but I have the system calculate the standard cost and plug that in as the
starting average cost. However, any old ballpark guess at what the cost
should be is way better than leaving it blank. Wish they had covered this
little "gotcha" in implementation/training. Average cost in Vantage seems
to have a lot of potholes you have to watch out for. Negative inventory
balances, adjustments when jobs close, and backflushing can all screw things
up big time. Do not even attempt to "auto-receive" unless you are on
standard cost.
Greg Clauser
Lakin General Corporation
gclauser@... <mailto:gclauser@...>
Wayne:
How new is your database? If you have only recently initialized Vantage,
then there is no data in there to average. Your accounting dept. needs to
go in there and enter a cost (Inventory Mgmt, GenOps, Cost Adjustment)-or
you can have them look at the cost (from the job) at the time of the receipt
and enter that. We have a cost in all of our parts - Manufactured are
Standard Costed and Purchased are Average-this was a decision made by our
Accountant after attending the Controllers' Workshop. The manufactured
items are then reviewed periodically and costs are adjusted.
HTH
Lydia
-----Original Message-----
From: Wayne Katzenberger [mailto:wkatz@...]
Lydia,
When we do a receipt from manufacturing a cost does not always show up. If
no cost show I have instructed my inventory control people to back out of
the receipt until we can fix or determining the costs manually.
We are costing using average costs.
As far as I can tell, quantities move but the costs stay at zero. We have
verified this because we watch for manufactured items with quantities but
costs are zero. Our CFO has been indicating to me that our Inventory $ seem
to be understated and this may be the problem.
Wayne
transactions. With a new part, if you receive it into stock before all the
labor (and subcontract) transactions that produced it are processed the cost
will be wrong. What's worse (and even easer to do) is to "backflush" or
issue a stocked sub-component to another job (or ship it to a customer)
before it gets a cost established from a MFG-STK transaction.
These timing problems can play havoc with costs applied all the way down the
line. The only practical solution we've found was to establish and enter a
"starting point" cost when creating a new part. We're on average costing
but I have the system calculate the standard cost and plug that in as the
starting average cost. However, any old ballpark guess at what the cost
should be is way better than leaving it blank. Wish they had covered this
little "gotcha" in implementation/training. Average cost in Vantage seems
to have a lot of potholes you have to watch out for. Negative inventory
balances, adjustments when jobs close, and backflushing can all screw things
up big time. Do not even attempt to "auto-receive" unless you are on
standard cost.
Greg Clauser
Lakin General Corporation
gclauser@... <mailto:gclauser@...>
Wayne:
How new is your database? If you have only recently initialized Vantage,
then there is no data in there to average. Your accounting dept. needs to
go in there and enter a cost (Inventory Mgmt, GenOps, Cost Adjustment)-or
you can have them look at the cost (from the job) at the time of the receipt
and enter that. We have a cost in all of our parts - Manufactured are
Standard Costed and Purchased are Average-this was a decision made by our
Accountant after attending the Controllers' Workshop. The manufactured
items are then reviewed periodically and costs are adjusted.
HTH
Lydia
-----Original Message-----
From: Wayne Katzenberger [mailto:wkatz@...]
Lydia,
When we do a receipt from manufacturing a cost does not always show up. If
no cost show I have instructed my inventory control people to back out of
the receipt until we can fix or determining the costs manually.
We are costing using average costs.
As far as I can tell, quantities move but the costs stay at zero. We have
verified this because we watch for manufactured items with quantities but
costs are zero. Our CFO has been indicating to me that our Inventory $ seem
to be understated and this may be the problem.
Wayne