Return / Rework costs and Sales Gross Margin report - Vantage 8

Yahoo Archive
1

This also works for Average Cost.

 

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
Sent: Tuesday, January 27, 2015 10:38 AM
To: vantage@yahoogroups.com
Subject: [Vantage] Re: Return / Rework costs and Sales Gross Margin report - Vantage 8.03

 

 

I've been doing quite a bit of research on this in E9.05.702a.  Here's what I came up with:

This is for standard costs parts coming back that we want to track actual costs on.

 

1. RMA is dispositioned to a job at $0 (customer owns the product).  This job uses a product group of "Return / Rework" (or repair in our case)

2. Material is issued, labor is entered at time & quantity

3. Sales order to return the material is created using the same product group as the job (not the original product group).  Warranty is at $0; repair would be what we quoted the customer for the repair only.

4. When the job is closed and the product is shipped, standard costs are offset and only the actual costs incurred on the job remain in the product group. 

 

Couple of gotchas in our version:

1. If you create the job off the planning workbench it will default to the part master product group, not the sales order.  (there is an SCR on this).  We unfirm the release and manually create the job

2. A lot of our repair parts are serial tracked and there is a bug with dispositioning the serial number to the parent on the job, then shipping later off the job.  There is a workaround to maintain the serial numbers but it's not clean enough that I would want shipping personnel to have to use it.  We are waiting for a one-off on this.

2

I’m trying to find out what a best practice is to make a process of ours work.

 

1.       We receive parts back in to be reworked and create a credit invoice for the customer return.

2.       We create a new sales order line item for the reworked parts to ship from.

3.       Once reworked, we re-ship them back to the customer as we would any other order.

 

The problem we are experiencing is when we run a Sales Gross Margin report, the “costs” (mtl,lbr,bur,sub) to create the reworked parts doesn’t reflect the costs “originally” associated with them when they were first built.  So this grossly inflates our sales margins since a majority of the time the costs are 0 for reworked parts so it looks like we have a 100% sales margin on the invoice when we (re) ship them.  I’m wondering how other people handle this to recognize the costs correctly from a sales margin standpoint.  Thanks…

 

Mike Abell

Information Technology Manager
Flexial - BOA Group - Cookeville, Tennessee
Office:   931.432.8408
Mobile:  615.418.3055 
email:  MAbell@...

 

3
Do you have the quality Module? That would make that process much easier. Processing the RMA as fail would then create a DMR which you could then accept as material to a job made to fulfill that return sales order. All the costs associated with the RMA then flow through the DMR into the job (as material costs), adding your additional job costs you would then show a much more accurate picture as to what your costs were to ship that order.

Rob Bucek
Production Control Manager
PH: (715) 284-5376 ext 311
Mobile: (715)896-3119
FAX: (715)284-4084
[cid:1.234354861@...]<http://www.dsmfg.com/>
(Click the logo to view our site)<http://www.dsmfg.com/>

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
Sent: Tuesday, January 27, 2015 10:21 AM
To: vantage@yahoogroups.com
Subject: [Vantage] Return / Rework costs and Sales Gross Margin report - Vantage 8.03


I'm trying to find out what a best practice is to make a process of ours work.


1. We receive parts back in to be reworked and create a credit invoice for the customer return.

2. We create a new sales order line item for the reworked parts to ship from.

3. Once reworked, we re-ship them back to the customer as we would any other order.

The problem we are experiencing is when we run a Sales Gross Margin report, the "costs" (mtl,lbr,bur,sub) to create the reworked parts doesn't reflect the costs "originally" associated with them when they were first built. So this grossly inflates our sales margins since a majority of the time the costs are 0 for reworked parts so it looks like we have a 100% sales margin on the invoice when we (re) ship them. I'm wondering how other people handle this to recognize the costs correctly from a sales margin standpoint. Thanks...

Mike Abell
Information Technology Manager
Flexial - BOA Group - Cookeville, Tennessee
Office: 931.432.8408
Mobile: 615.418.3055
email: MAbell@...<mailto:MAbell@...>




[Non-text portions of this message have been removed]
4

When you disposition the RMA – you can also disposition the RMA to job -  The material is automatically added.

 

Then create the demand link to the sales order that you will use to ship the product back to the customer.

 

When the job is shipped – created the invoice.

 

Just an opinion but, no matter why you are bringing in customer product – use the RMA system for tracking.

 

You can use a reason code of Customer Requested Rework or Upgrade.

 

 

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
Sent: Tuesday, January 27, 2015 9:25 AM
To: 'vantage@yahoogroups.com'
Subject: [Vantage] RE: Return / Rework costs and Sales Gross Margin report - Vantage 8.03

 

 

Do you have the quality Module? That would make that process much easier. Processing the RMA as fail would then create a DMR which you could then accept as material to a job made to fulfill that return sales order. All the costs associated with the RMA then flow through the DMR into the job (as material costs), adding your additional job costs you would then show a much more accurate picture as to what your costs were to ship that order.

Rob Bucek
Production Control Manager
PH: (715) 284-5376 ext 311
Mobile: (715)896-3119
FAX: (715)284-4084
[cid:1.234354861@...]<http://www.dsmfg.com/>
(Click the logo to view our site)<http://www.dsmfg.com/>

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
Sent: Tuesday, January 27, 2015 10:21 AM
To: vantage@yahoogroups.com
Subject: [Vantage] Return / Rework costs and Sales Gross Margin report - Vantage 8.03

I'm trying to find out what a best practice is to make a process of ours work.

1. We receive parts back in to be reworked and create a credit invoice for the customer return.

2. We create a new sales order line item for the reworked parts to ship from.

3. Once reworked, we re-ship them back to the customer as we would any other order.

The problem we are experiencing is when we run a Sales Gross Margin report, the "costs" (mtl,lbr,bur,sub) to create the reworked parts doesn't reflect the costs "originally" associated with them when they were first built. So this grossly inflates our sales margins since a majority of the time the costs are 0 for reworked parts so it looks like we have a 100% sales margin on the invoice when we (re) ship them. I'm wondering how other people handle this to recognize the costs correctly from a sales margin standpoint. Thanks...

Mike Abell
Information Technology Manager
Flexial - BOA Group - Cookeville, Tennessee
Office: 931.432.8408
Mobile: 615.418.3055
email: MAbell@...<mailto:MAbell@...>

[Non-text portions of this message have been removed]

5

Thanks Rob, yes we have the quality module.  Another problem is that the “credit” invoice doesn’t have any costs associated with it to “offset” the costs from the original invoice.  Not sure if this is “just how it is” or we aren’t processing something correctly.  Any ideas??

 

Mike..

 

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
Sent: Tuesday, January 27, 2015 10:25 AM
To: 'vantage@yahoogroups.com'
Subject: [Vantage] RE: Return / Rework costs and Sales Gross Margin report - Vantage 8.03

 

 

Do you have the quality Module? That would make that process much easier. Processing the RMA as fail would then create a DMR which you could then accept as material to a job made to fulfill that return sales order. All the costs associated with the RMA then flow through the DMR into the job (as material costs), adding your additional job costs you would then show a much more accurate picture as to what your costs were to ship that order.

Rob Bucek
Production Control Manager
PH: (715) 284-5376 ext 311
Mobile: (715)896-3119
FAX: (715)284-4084
[cid:1.234354861@...]<http://www.dsmfg.com/>
(Click the logo to view our site)<http://www.dsmfg.com/>

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
Sent: Tuesday, January 27, 2015 10:21 AM
To: vantage@yahoogroups.com
Subject: [Vantage] Return / Rework costs and Sales Gross Margin report - Vantage 8.03

I'm trying to find out what a best practice is to make a process of ours work.

1. We receive parts back in to be reworked and create a credit invoice for the customer return.

2. We create a new sales order line item for the reworked parts to ship from.

3. Once reworked, we re-ship them back to the customer as we would any other order.

The problem we are experiencing is when we run a Sales Gross Margin report, the "costs" (mtl,lbr,bur,sub) to create the reworked parts doesn't reflect the costs "originally" associated with them when they were first built. So this grossly inflates our sales margins since a majority of the time the costs are 0 for reworked parts so it looks like we have a 100% sales margin on the invoice when we (re) ship them. I'm wondering how other people handle this to recognize the costs correctly from a sales margin standpoint. Thanks...

Mike Abell
Information Technology Manager
Flexial - BOA Group - Cookeville, Tennessee
Office: 931.432.8408
Mobile: 615.418.3055
email: MAbell@...<mailto:MAbell@...>

[Non-text portions of this message have been removed]

6
Why would you offset the original costs? They are additional costs to the original shipment...

Sent from my iPhone

On Jan 27, 2015, at 11:44 AM, Mike Abell mabell@... [vantage] <vantage@yahoogroups.com> wrote:

 

Thanks Rob, yes we have the quality module.  Another problem is that the “credit” invoice doesn’t have any costs associated with it to “offset” the costs from the original invoice.  Not sure if this is “just how it is” or we aren’t processing something correctly.  Any ideas??

 

Mike..

 

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
Sent: Tuesday, January 27, 2015 10:25 AM
To: 'vantage@yahoogroups.com'
Subject: [Vantage] RE: Return / Rework costs and Sales Gross Margin report - Vantage 8.03

 

 

Do you have the quality Module? That would make that process much easier. Processing the RMA as fail would then create a DMR which you could then accept as material to a job made to fulfill that return sales order. All the costs associated with the RMA then flow through the DMR into the job (as material costs), adding your additional job costs you would then show a much more accurate picture as to what your costs were to ship that order.

Rob Bucek
Production Control Manager
PH: (715) 284-5376 ext 311
Mobile: (715)896-3119
FAX: (715)284-4084
[cid:1.234354861@...]<http://www.dsmfg.com/>
(Click the logo to view our site)<http://www.dsmfg.com/>

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
Sent: Tuesday, January 27, 2015 10:21 AM
To: vantage@yahoogroups.com
Subject: [Vantage] Return / Rework costs and Sales Gross Margin report - Vantage 8.03

I'm trying to find out what a best practice is to make a process of ours work.

1. We receive parts back in to be reworked and create a credit invoice for the customer return.

2. We create a new sales order line item for the reworked parts to ship from.

3. Once reworked, we re-ship them back to the customer as we would any other order.

The problem we are experiencing is when we run a Sales Gross Margin report, the "costs" (mtl,lbr,bur,sub) to create the reworked parts doesn't reflect the costs "originally" associated with them when they were first built. So this grossly inflates our sales margins since a majority of the time the costs are 0 for reworked parts so it looks like we have a 100% sales margin on the invoice when we (re) ship them. I'm wondering how other people handle this to recognize the costs correctly from a sales margin standpoint. Thanks...

Mike Abell
Information Technology Manager
Flexial - BOA Group - Cookeville, Tennessee
Office: 931.432.8408
Mobile: 615.418.3055
email: MAbell@...<mailto:MAbell@...>

[Non-text portions of this message have been removed]

7

Hi Anthony, I guess “offset” is not the right term.  The problem is when we look at the Gross Margin Sales report, it never shows “credit” sales or costs to offset the original sales or costs…

 

Mike..

 

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
Sent: Tuesday, January 27, 2015 10:48 AM
To: vantage@yahoogroups.com
Subject: Re: [Vantage] RE: Return / Rework costs and Sales Gross Margin report - Vantage 8.03

 

 

Why would you offset the original costs? They are additional costs to the original shipment...

Sent from my iPhone


On Jan 27, 2015, at 11:44 AM, Mike Abell mabell@... [vantage] <vantage@yahoogroups.com> wrote:

 

Thanks Rob, yes we have the quality module.  Another problem is that the “credit” invoice doesn’t have any costs associated with it to “offset” the costs from the original invoice.  Not sure if this is “just how it is” or we aren’t processing something correctly.  Any ideas??

 

Mike..

 

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
Sent: Tuesday, January 27, 2015 10:25 AM
To: 'vantage@yahoogroups.com'
Subject: [Vantage] RE: Return / Rework costs and Sales Gross Margin report - Vantage 8.03

 

 

Do you have the quality Module? That would make that process much easier. Processing the RMA as fail would then create a DMR which you could then accept as material to a job made to fulfill that return sales order. All the costs associated with the RMA then flow through the DMR into the job (as material costs), adding your additional job costs you would then show a much more accurate picture as to what your costs were to ship that order.

Rob Bucek
Production Control Manager
PH: (715) 284-5376 ext 311
Mobile: (715)896-3119
FAX: (715)284-4084
[cid:1.234354861@...]<http://www.dsmfg.com/>
(Click the logo to view our site)<http://www.dsmfg.com/>

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
Sent: Tuesday, January 27, 2015 10:21 AM
To: vantage@yahoogroups.com
Subject: [Vantage] Return / Rework costs and Sales Gross Margin report - Vantage 8.03

I'm trying to find out what a best practice is to make a process of ours work.

1. We receive parts back in to be reworked and create a credit invoice for the customer return.

2. We create a new sales order line item for the reworked parts to ship from.

3. Once reworked, we re-ship them back to the customer as we would any other order.

The problem we are experiencing is when we run a Sales Gross Margin report, the "costs" (mtl,lbr,bur,sub) to create the reworked parts doesn't reflect the costs "originally" associated with them when they were first built. So this grossly inflates our sales margins since a majority of the time the costs are 0 for reworked parts so it looks like we have a 100% sales margin on the invoice when we (re) ship them. I'm wondering how other people handle this to recognize the costs correctly from a sales margin standpoint. Thanks...

Mike Abell
Information Technology Manager
Flexial - BOA Group - Cookeville, Tennessee
Office: 931.432.8408
Mobile: 615.418.3055
email: MAbell@...<mailto:MAbell@...>

[Non-text portions of this message have been removed]

8

What ”credit” are you trying to do?

 

Manasa

 

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
Sent: Tuesday, January 27, 2015 10:45 AM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] RE: Return / Rework costs and Sales Gross Margin report - Vantage 8.03

 

 

Thanks Rob, yes we have the quality module.  Another problem is that the “credit” invoice doesn’t have any costs associated with it to “offset” the costs from the original invoice.  Not sure if this is “just how it is” or we aren’t processing something correctly.  Any ideas??

 

Mike..

 

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
Sent: Tue sday, January 27, 2015 10:25 AM
To: 'vantage@yahoogroups.com'
Subject: [Vantage] RE: Return / Rework costs and Sales Gross Margin report - Vantage 8.03

 

 

Do you have the quality Module? That would make that process much easier. Processing the RMA as fail would then create a DMR which you could then accept as material to a job made to fulfill that return sales order. All the costs associated with the RMA then flow through the DMR into the job (as material costs), adding your additional job costs you would then show a much more accurate picture as to what your costs were to ship that order.

Rob Bucek
Production Control Manager
PH: (715) 284-5376 ext 311
Mobile: (715)896-3119
FAX: (715)284-4084
[cid:1.234354861@...]<http://www.dsmfg.com/>
(Click the logo to view our site)<http://www.dsmfg.com/>

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
Sent: Tuesday, January 27, 2015 10:21 AM
To: vantage@yahoogroups.com
Subject: [Vantage] Return / Rework costs and Sales Gross Margin report - Vantage 8.03

I'm trying to find out what a best practice is to make a process of ours work.

1. We receive parts back in to be reworked and create a credit invoice for the customer return.

2. We create a new sales order line item for the reworked parts to ship from.

3. Once reworked, we re-ship them back to the customer as we would any other order.

The problem we are experienc ing is when we run a Sales Gross Margin report, the "costs" (mtl,lbr,bur,sub) to create the reworked parts doesn't reflect the costs "originally" associated with them when they were first built. So this grossly inflates our sales margins since a majority of the time the costs are 0 for reworked parts so it looks like we have a 100% sales margin on the invoice when we (re) ship them. I'm wondering how other people handle this to recognize the costs correctly from a sales margin standpoint. Thanks...

Mike Abell
Information Technology Manager
Flexial - BOA Group - Cookeville, Tennessee
Office: 931.432.8408
Mobile: 615.418.3055
email: MAbell@...<mailto:MAbell@...>

[Non-text portions of this message have been removed]

9

A credit for the returned parts…

 

Mike..

 

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
Sent: Tuesday, January 27, 2015 11:15 AM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] RE: Return / Rework costs and Sales Gross Margin report - Vantage 8.03

 

 

What ”credit” are you trying to do?

 

Manasa

 

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
Sent: Tuesday, January 27, 2015 10:45 AM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] RE: Return / Rework costs and Sales Gross Margin report - Vantage 8.03

 

 

Thanks Rob, yes we have the quality module.  Another problem is that the “credit” invoice doesn’t have any costs associated with it to “offset” the costs from the original invoice.  Not sure if this is “just how it is” or we aren’t processing something correctly.  Any ideas??

 

Mike..

 

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
Sent: Tue sday, January 27, 2015 10:25 AM
To: 'vantage@yahoogroups.com'
Subject: [Vantage] RE: Return / Rework costs and Sales Gross Margin report - Vantage 8.03

 

 

Do you have the quality Module? That would make that process much easier. Processing the RMA as fail would then create a DMR which you could then accept as material to a job made to fulfill that return sales order. All the costs associated with the RMA then flow through the DMR into the job (as material costs), adding your additional job costs you would then show a much more accurate picture as to what your costs were to ship that order.

Rob Bucek
Production Control Manager
PH: (715) 284-5376 ext 311
Mobile: (715)896-3119
FAX: (715)284-4084
[cid:1.234354861@...]<http://www.dsmfg.com/>
(Click the logo to view our site)<http://www.dsmfg.com/>

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
Sent: Tuesday, January 27, 2015 10:21 AM
To: vantage@yahoogroups.com
Subject: [Vantage] Return / Rework costs and Sales Gross Margin report - Vantage 8.03

I'm trying to find out what a best practice is to make a process of ours work.

1. We receive parts back in to be reworked and create a credit invoice for the customer return.

2. We create a new sales order line item for the reworked parts to ship from.

3. Once reworked, we re-ship them back to the customer as we would any other order.

The problem we are experienc ing is when we run a Sales Gross Margin report, the "costs" (mtl,lbr,bur,sub) to create the reworked parts doesn't reflect the costs "originally" associated with them when they were first built. So this grossly inflates our sales margins since a majority of the time the costs are 0 for reworked parts so it looks like we have a 100% sales margin on the invoice when we (re) ship them. I'm wondering how other people handle this to recognize the costs correctly from a sales margin standpoint. Thanks...

Mike Abell
Information Technology Manager
Flexial - BOA Group - Cookeville, Tennessee
Office: 931.432.8408
Mobile: 615.418.3055
email: MAbell@...<mailto:MAbell@...>

[Non-text portions of this message have been removed]

10

So your policy is to credit the customer for something you are repairing and sending back?  Or are you repairing and putting back on the shelf?

Manasa

 

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
Sent: Tuesday, January 27, 2015 11:22 AM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] RE: Return / Rework costs and Sales Gross Margin report - Vantage 8.03

 

 

A credit for the returned parts…

 

Mike..

 

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
Sent: Tuesday, January 27, 2015 11:15 AM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] RE: Return / Rework costs and Sales Gross Margin report - Vantage 8.03

 

 

What ”credit” are you trying to do?

 

Manasa

 

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
Sent: Tuesday, January 27, 2015 10:45 AM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] RE: Return / Rework costs and Sales Gross Margin report - Vantage 8.03

 

 

Thanks Rob, yes we have the quality module.  Another problem is that the “credit” invoice doesn’t have any costs associated with it to “offset” the costs from the original invoice.  Not sure if this is “just how it is” or we aren’t processing something correctly.  Any ideas??

 

Mike..

 

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
Sent: Tue sday, January 27, 2015 10:25 AM
To: 'vantage@yahoogroups.com'
Subject: [Vantage] RE: Return / Rework costs and Sales Gross Margin report - Vantage 8.03

 

 

Do you have the quality Module? That would make that process much easier. Processing the RMA as fail would then create a DMR which you could then accept as material to a job made to fulfill that return sales order. All the costs associated with the RMA then flow through the DMR into the job (as material costs), adding your additional job costs you would then show a much more accurate picture as to what your costs were to ship that order.

Rob Bucek
Production Control Manager
PH: (715) 284-5376 ext 311
Mobile: (715)896-3119
FAX: (715)284-4084
[cid:1.234354861@...]<http://www.dsmfg.com/>
(Click the logo to view our site)<http://www.dsmfg.com/>

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
Sent: Tuesday, January 27, 2015 10:21 AM
To: vantage@yahoogroups.com
Subject: [Vantage] Return / Rework costs and Sales Gross Margin report - Vantage 8.03

I'm trying to find out what a best practice is to make a process of ours work.

1. We rece ive parts back in to be reworked and create a credit invoice for the customer return.

2. We create a new sales order line item for the reworked parts to ship from.

3. Once reworked, we re-ship them back to the customer as we would any other order.

The problem we are experienc ing is when we run a Sales Gross Margin report, the "costs" (mtl,lbr,bur,sub) to create the reworked parts doesn't reflect the costs "originally" associated with them when they were first built. So this grossly inflates our sales margins since a majority of the time the costs are 0 for reworked parts so it looks like we have a 100% sales margin on the invoice when we (re) ship them. I'm wondering how other people handle this to recognize the costs correctly from a sales margin standpoint. Thanks...

Mike Abell
Information Technology Manager
Flexial - BOA Group - Cookeville, Tennessee
Office: 931.432.8408
Mobile: 615.418.3055
email: MAbell@...<mailto:MAbell@...>

[Non-text portions of this message have been removed]

11

You have a few very separate transactions and maybe I am not understanding the problem.

 

Is the rework the companies fault or is it requested by the customer?

 

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
Sent: Tuesday, January 27, 2015 9:45 AM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] RE: Return / Rework costs and Sales Gross Margin report - Vantage 8.03

 

 

Thanks Rob, yes we have the quality module.  Another problem is that the “credit” invoice doesn’t have any costs associated with it to “offset” the costs from the original invoice.  Not sure if this is “just how it is” or we aren’t processing something correctly.  Any ideas??

 

Mike..

 

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
Sent: Tuesday, January 27, 2015 10:25 AM
To: 'vantage@yahoogroups.com'
Subject: [Vantage] RE: Return / Rework costs and Sales Gross Margin report - Vantage 8.03

 

 

Do you have the quality Module? That would make that process much easier. Processing the RMA as fail would then create a DMR which you could then accept as material to a job made to fulfill that return sales order. All the costs associated with the RMA then flow through the DMR into the job (as material costs), adding your additional job costs you would then show a much more accurate picture as to what your costs were to ship that order.

Rob Bucek
Production Control Manager
PH: (715) 284-5376 ext 311
Mobile: (715)896-3119
FAX: (715)284-4084
[cid:1.234354861@...]<http://www.dsmfg.com/>
(Click the logo to view our site)<http://www.dsmfg.com/>

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
Sent: Tuesday, January 27, 2015 10:21 AM
To: vantage@yahoogroups.com
Subject: [Vantage] Return / Rework costs and Sales Gross Margin report - Vantage 8.03

I'm trying to find out what a best practice is to make a process of ours work.

1. We receive parts back in to be reworked and create a credit invoice for the customer return.

2. We create a new sales order line item for the reworked parts to ship from.

3. Once reworked, we re-ship them back to the customer as we would any other order.

The problem we are experiencing is when we run a Sales Gross Margin report, the "costs" (mtl,lbr,bur,sub) to create the reworked parts doesn't reflect the costs "originally" associated with them when they were first built. So this grossly inflates our sales margins since a majority of the time the costs are 0 for reworked parts so it looks like we have a 100% sales margin on the invoice when we (re) ship them. I'm wondering how other people handle this to recognize the costs correctly from a sales margin standpoint. Thanks...

Mike Abell
Information Technology Manager
Flexial - BOA Group - Cookeville, Tennessee
Office: 931.432.8408
Mobile: 615.418.3055
email: MAbell@...<mailto:MAbell@...>

[Non-text portions of this message have been removed]

12
When you process the RMA are you tying it to the specific sales order you shipped it against? If you don't the system can't possibly determine the costs. Depending on your configuration and if you ship from stock, you can pick a sales order that most represents the current costs (usually something recent if not the last one shipped). Barring that, as sort of a work around you could accept it to stock and then issue it to the replenishment job, though that probably isn't the cleanest procedure from a transactional standpoint. If need be contact me offline and I could send you screen shots of stepping through the process and what the costs look like at the various stages and how they look....

Rob Bucek
Production Control Manager
PH: (715) 284-5376 ext 311
Mobile: (715)896-3119
FAX: (715)284-4084
[cid:1.234354861@...]<http://www.dsmfg.com/>
(Click the logo to view our site)<http://www.dsmfg.com/>

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
Sent: Tuesday, January 27, 2015 10:45 AM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] RE: Return / Rework costs and Sales Gross Margin report - Vantage 8.03


Thanks Rob, yes we have the quality module. Another problem is that the "credit" invoice doesn't have any costs associated with it to "offset" the costs from the original invoice. Not sure if this is "just how it is" or we aren't processing something correctly. Any ideas??

Mike..

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
Sent: Tuesday, January 27, 2015 10:25 AM
To: 'vantage@yahoogroups.com'
Subject: [Vantage] RE: Return / Rework costs and Sales Gross Margin report - Vantage 8.03



Do you have the quality Module? That would make that process much easier. Processing the RMA as fail would then create a DMR which you could then accept as material to a job made to fulfill that return sales order. All the costs associated with the RMA then flow through the DMR into the job (as material costs), adding your additional job costs you would then show a much more accurate picture as to what your costs were to ship that order.

Rob Bucek
Production Control Manager
PH: (715) 284-5376 ext 311
Mobile: (715)896-3119
FAX: (715)284-4084
[cid:1.234354861@...]<http://www.dsmfg.com/>
(Click the logo to view our site)<http://www.dsmfg.com/>

From: vantage@yahoogroups.com<mailto:vantage@yahoogroups.com> [mailto:vantage@yahoogroups.com]
Sent: Tuesday, January 27, 2015 10:21 AM
To: vantage@yahoogroups.com<mailto:vantage@yahoogroups.com>
Subject: [Vantage] Return / Rework costs and Sales Gross Margin report - Vantage 8.03

I'm trying to find out what a best practice is to make a process of ours work.

1. We receive parts back in to be reworked and create a credit invoice for the customer return.

2. We create a new sales order line item for the reworked parts to ship from.

3. Once reworked, we re-ship them back to the customer as we would any other order.

The problem we are experiencing is when we run a Sales Gross Margin report, the "costs" (mtl,lbr,bur,sub) to create the reworked parts doesn't reflect the costs "originally" associated with them when they were first built. So this grossly inflates our sales margins since a majority of the time the costs are 0 for reworked parts so it looks like we have a 100% sales margin on the invoice when we (re) ship them. I'm wondering how other people handle this to recognize the costs correctly from a sales margin standpoint. Thanks...

Mike Abell
Information Technology Manager
Flexial - BOA Group - Cookeville, Tennessee
Office: 931.432.8408
Mobile: 615.418.3055
email: MAbell@...<mailto:MAbell@...<mailto:MAbell@...%3cmailto:MAbell@...>>

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13

I've been doing quite a bit of research on this in E9.05.702a.  Here's what I came up with:

This is for standard costs parts coming back that we want to track actual costs on.

 

1. RMA is dispositioned to a job at $0 (customer owns the product).  This job uses a product group of "Return / Rework" (or repair in our case)

2. Material is issued, labor is entered at time & quantity

3. Sales order to return the material is created using the same product group as the job (not the original product group).  Warranty is at $0; repair would be what we quoted the customer for the repair only.

4. When the job is closed and the product is shipped, standard costs are offset and only the actual costs incurred on the job remain in the product group. 

 

Couple of gotchas in our version:

1. If you create the job off the planning workbench it will default to the part master product group, not the sales order.  (there is an SCR on this).  We unfirm the release and manually create the job

2. A lot of our repair parts are serial tracked and there is a bug with dispositioning the serial number to the parent on the job, then shipping later off the job.  There is a workaround to maintain the serial numbers but it's not clean enough that I would want shipping personnel to have to use it.  We are waiting for a one-off on this.