Hi Paul,
We went through a similar scenario about 1 1/2 years ago when we moved to Vantage 5.0. In dealing with Purchased parts, I wrote a report that compared the Average cost, Last cost, and a 'calculated average' cost. If the three numbers were within a certain tolerance (like 5%), then we used the average cost to 'Roll Over' (as some people call it) as the new standard. Those parts that were outside of the of the tolerance we reviewed manually to come up with a reasonable standard.
We then used Vantage's cost rollup feature to "roll over" the average cost into the standard cost on Purchased parts only. After that we "Rolled UP" the Manufactured parts. It worked fairly well for us, and didn't change our Inventory Value by very much.
Troy Funte
Liberty Electronics
We went through a similar scenario about 1 1/2 years ago when we moved to Vantage 5.0. In dealing with Purchased parts, I wrote a report that compared the Average cost, Last cost, and a 'calculated average' cost. If the three numbers were within a certain tolerance (like 5%), then we used the average cost to 'Roll Over' (as some people call it) as the new standard. Those parts that were outside of the of the tolerance we reviewed manually to come up with a reasonable standard.
We then used Vantage's cost rollup feature to "roll over" the average cost into the standard cost on Purchased parts only. After that we "Rolled UP" the Manufactured parts. It worked fairly well for us, and didn't change our Inventory Value by very much.
Troy Funte
Liberty Electronics
----- Original Message -----
From: paulmrab
To: vantage@yahoogroups.com
Sent: Friday, September 27, 2002 5:55 PM
Subject: [Vantage] Standard Cost Rollup
We operate a Standard Cost system. In reviewing the logic behind
average cost calulations it becomes clear that this is not an average
cost but instead an average of the amounts entered on the POs by the
purchasing agent. This average ignores all variances that come
through the system. My questions is: Has anyone developed a simple
process for determining what the "new" standard should be. If a real
average existed this would be ideal.
Any ideas?
Is anyone else out there using Vantage in a Standard Cost enviroment?
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