# Standard Cost

Thanks to everyone for your input. I now have enough information to
take the correct actions. Thanks!

________________________________

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
Of Claudia J Stone
Sent: Wednesday, October 31, 2007 2:59 PM
To: vantage@yahoogroups.com
Subject: [Vantage] Re: Standard Cost

The average cost is a weighted average of all receipt costs for a
specific part. This cost is recalculated every time you process a PO
receipt for a purchased item or a manufacturing receipt to stock from
a job.

The formula is (Previous On-Hand Quantity x Previous Unit Cost) +
(Receipt Quantity x Receipt Cost) / New Quantity On-Hand

This underlying business logic is the same in versions 5.2, 6.1 and
8.xx.

HTH

Claudia Stone
Aspacia Systems, Inc.

--- In vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com> ,
"Hernandez, Dolores" <dhernandez@...>
wrote:
>
> Our material manager was under the assumption that the average cost
was
> partly determined by the standard cost and because the standard
cost are
> not correct, the average cost was incorrect.
>
> So how is the average cost determined? And we are using the average
> cost method.
>
>
>
> ________________________________
>
> From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com> ] On
Behalf
> Of Mark Wonsil
> Sent: Wednesday, October 31, 2007 12:01 PM
> To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
> Subject: RE: [Vantage] Standard Cost
>
>
>
> Just to add to Scott's remarks:
>
> > Standard Cost are completely manually set.
>
> Standard costs can be set manually using Cost Adjustment or through
the
> Costing Workbench when doing a Cost Roll Up, which is
an "automatic" way
> to
> manually set the standard cost.
>
> ;-)
>
> I was told that Vantage always calculates every cost method but only
> uses the
> one that is set on the Part Plant record for the given plant. If the
> method is
> average, it really shouldn't matter what is in the standard cost
fields.
>
> Mark W.
>
>
>
>
>
> [Non-text portions of this message have been removed]
>

[Non-text portions of this message have been removed]
We are using a average costing system and want to change over to a standard cost system but our standard cost are not populated.

Is there a way to populate our standard cost for all parts without having to manually enter each one separately?

Thanks,

Jasper

[Non-text portions of this message have been removed]
Try cost set feature. We use it works pretty well.

Frank Zeigafuse
Innovative Office Products
General Manager
Direct Phone: 610-559-6369
Email: fzeigafuse@...

-----Original Message-----
From: Jasper Recto [mailto:jrecto@...]
Sent: Monday, March 07, 2005 11:13 AM
To: Vantage Groups (E-mail)
Subject: [Vantage] Standard Cost

We are using a average costing system and want to change over to a standard
cost system but our standard cost are not populated.

Is there a way to populate our standard cost for all parts without having to
manually enter each one separately?

Thanks,

Jasper

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

Useful links for the Yahoo!Groups Vantage Board are: ( Note: You must have
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Could anyone tell me in which table the Average and Standard part's cost
are stored. Also, what would be the repercussions (if any) of zeroing
out the Standard cost. These amounts are all incorrect and it throws
off the average cost. Any info would be greatly appreciated.

Thanks,

__________________________________________________

Dolores Hernandez

Software Analyst

Energy Cranes, LLC
6707 Northwind Drive
Houston, Texas 77041
Tel: 713-896-5178

Fax: 713-896-5142

Email: dhernandez@...

[Non-text portions of this message have been removed]
The part table has the costs stored each one is labeled as avg or std or
lst with each bucket ie labor, burden, mtl, subcont and mtlbur. What
costing method are you using? How does the standard cost affect the
average cost? What version of vantage are you running.

Jim

________________________________

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
On Behalf Of Hernandez, Dolores
Sent: Wednesday, October 31, 2007 12:58 PM
To: vantage@yahoogroups.com
Subject: [Vantage] Standard Cost

Could anyone tell me in which table the Average and Standard
part's cost
are stored. Also, what would be the repercussions (if any) of
zeroing
out the Standard cost. These amounts are all incorrect and it
throws
off the average cost. Any info would be greatly appreciated.

Thanks,

__________________________________________________

Dolores Hernandez

Software Analyst

Energy Cranes, LLC
6707 Northwind Drive
Houston, Texas 77041
Tel: 713-896-5178

Fax: 713-896-5142

Email: dhernandez@...
<mailto:dhernandez%40energycranes.com>

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

[Non-text portions of this message have been removed]
The Table is called PartCost. Which can be view in Part Tracker or Cost

Standard Cost are completely manually set. Changing Standard Cost does not
affect Average or Last. Average and Last are controlled by Purchases for
Purchase Part and I believe by Jobs for Manufactured. Not 100% sure on
Manufactured.

Scott

-----Original Message-----
From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of
Jim Frice
Sent: Wednesday, October 31, 2007 12:07 PM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] Standard Cost

The part table has the costs stored each one is labeled as avg or std or
lst with each bucket ie labor, burden, mtl, subcont and mtlbur. What
costing method are you using? How does the standard cost affect the
average cost? What version of vantage are you running.

Jim

________________________________

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
On Behalf Of Hernandez, Dolores
Sent: Wednesday, October 31, 2007 12:58 PM
To: vantage@yahoogroups.com
Subject: [Vantage] Standard Cost

Could anyone tell me in which table the Average and Standard
part's cost
are stored. Also, what would be the repercussions (if any) of
zeroing
out the Standard cost. These amounts are all incorrect and it
throws
off the average cost. Any info would be greatly appreciated.

Thanks,

__________________________________________________

Dolores Hernandez

Software Analyst

Energy Cranes, LLC
6707 Northwind Drive
Houston, Texas 77041
Tel: 713-896-5178

Fax: 713-896-5142

Email: dhernandez@...
<mailto:dhernandez%40energycranes.com>

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

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

Useful links for the Yahoo!Groups Vantage Board are: ( Note: You must have
(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:
Just to add to Scott's remarks:

> Standard Cost are completely manually set.

Standard costs can be set manually using Cost Adjustment or through the
Costing Workbench when doing a Cost Roll Up, which is an "automatic" way to
manually set the standard cost.

;-)

I was told that Vantage always calculates every cost method but only uses the
one that is set on the Part Plant record for the given plant. If the method is
average, it really shouldn't matter what is in the standard cost fields.

Mark W.
Our material manager was under the assumption that the average cost was
partly determined by the standard cost and because the standard cost are
not correct, the average cost was incorrect.

So how is the average cost determined? And we are using the average
cost method.

________________________________

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
Of Mark Wonsil
Sent: Wednesday, October 31, 2007 12:01 PM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] Standard Cost

Just to add to Scott's remarks:

> Standard Cost are completely manually set.

Standard costs can be set manually using Cost Adjustment or through the
Costing Workbench when doing a Cost Roll Up, which is an "automatic" way
to
manually set the standard cost.

;-)

I was told that Vantage always calculates every cost method but only
uses the
one that is set on the Part Plant record for the given plant. If the
method is
average, it really shouldn't matter what is in the standard cost fields.

Mark W.

[Non-text portions of this message have been removed]
Per v8 help file: Average cost "Represents a weighted average of all receipt costs for a particular part."

If I remember correctly from training, it calculates the weighted (by pc's received & cost per pc of receipt) average from a fixed period start date to the current date. That cost period start date can then be adjusted and reset via Costing WorkBench (where all part costs can then be recalculated, rolled up and posted).

Perhaps someday they will support FIFO based average costing (where the weighted average cost is based upon actual on-hand inventory at any given moment). That would give a truer 'real time' picture of overall costs and (perhaps) result in a much small magnitude of total cost variances being posted to cost variance GL accounts.

For quoting/estimating stability, routinely reviewed (quarterly, bi-annually) & updated standard cost (based upon average cost over the last period plus some anticipated inflation factor expected to be incurred) is the easiest.

From a business metrics perspective, standard costs routinely recalculated in this way also act as a benchmark to identify parts or groups of parts undergoing significant variance from the set standard. You can then use the cost variance GL entries to go after Parts, in house Job MoM processes and/or vendors that are exceptionally exceeding the expected standard costs.

Rob Brown
Versa Products

----- Original Message ----
From: "Hernandez, Dolores" <dhernandez@...>
To: vantage@yahoogroups.com
Sent: Wednesday, October 31, 2007 3:50:48 PM
Subject: RE: [Vantage] Standard Cost

Our material manager was under the assumption that the average cost was
partly determined by the standard cost and because the standard cost are
not correct, the average cost was incorrect.

So how is the average cost determined? And we are using the average
cost method.

____________ _________ _________ __

From: vantage@yahoogroups .com [mailto:vantage@yahoogroups .com] On Behalf
Of Mark Wonsil
Sent: Wednesday, October 31, 2007 12:01 PM
To: vantage@yahoogroups .com
Subject: RE: [Vantage] Standard Cost

Just to add to Scott's remarks:

> Standard Cost are completely manually set.

Standard costs can be set manually using Cost Adjustment or through the
Costing Workbench when doing a Cost Roll Up, which is an "automatic" way
to
manually set the standard cost.

;-)

I was told that Vantage always calculates every cost method but only
uses the
one that is set on the Part Plant record for the given plant. If the
method is
average, it really shouldn't matter what is in the standard cost fields.

Mark W.

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

__________________________________________________
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[Non-text portions of this message have been removed]
Small correction.

In Costing Workbench it will update the costs the you choose. When you
create the group there are 4 options to choose to determine which costs you
update. Either Avg, Last, Std or Costing Method. Costing Method will update
the cost that your part is set at in Part Maintenance.

But true, this is a way to roll costs into the costing methods.

Also, Changing Standard Cost does not change Last or Avg. Cost. As a Test go
into Cost Adjustment, make a change to a Standard Cost, save it and then
refresh. You will see the Last and Avg. costs do not change.

Remember, any of the costs Avg, Last or Std. to the Unit - Material, Labor,
Burden, Subcontract or Material Burden can be manually set at Cost
Adjustment. But the system will populate Purchased Parts based on AP Invoice
for Part in the Last and calculate Avg Cost. Look in help for Inventory
Concepts and Terms

Avg Cost is calculated as:
(Prev. Quantity x Prev.Unit Cost) + (Quantity Received x Receipt Unit Cost)
/ New Quantity On Hand

I believe the Last and Avg. Cost are updated from manufacturing when doing
the Capture COS\WIP, but we do not have the Inventory Interface turned on
(as of yet) so we are not doing some month-end procedures, so I am not 100%
sure.

Scott

-----Original Message-----
From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of
Mark Wonsil
Sent: Wednesday, October 31, 2007 1:01 PM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] Standard Cost

Just to add to Scott's remarks:

> Standard Cost are completely manually set.

Standard costs can be set manually using Cost Adjustment or through the
Costing Workbench when doing a Cost Roll Up, which is an "automatic" way to
manually set the standard cost.

;-)

I was told that Vantage always calculates every cost method but only uses
the
one that is set on the Part Plant record for the given plant. If the method
is
average, it really shouldn't matter what is in the standard cost fields.

Mark W.

Useful links for the Yahoo!Groups Vantage Board are: ( Note: You must have
(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:
Standard costs have no effect on Avg cost unless you have a Avg costed
manufactured part that contains material/subassemblies that are Std cost.

For purchased parts, Avg cost is the average PO price for what's in
stock weighted by the qty. If the Avg cost is not correct, someone
probably keyed in the wrong price on the PO and the items have been
Transaction History.

For manufactured parts, the Avg cost is the average per piece cost
from the job at the time the part was issued to Inventory. Note that
you have to put the part into inventory to update the cost. If the
part is always issued from one job directly to the next job (WIP to
WIP) the Avg cost doesn't update. I forget what happens when you ship
from WIP but I don't think it's updated then either. If you don't
issue the part to inventory, in effect, you end up with a
quasi-standard cost despite the chosen Avg Cost in Part Maintenance.

The part costs are in the Part table for 6.1 but 8.0+ it's in the
PartCost table

Good luck.

--- In vantage@yahoogroups.com, "Hernandez, Dolores" <dhernandez@...>
wrote:
>
> Our material manager was under the assumption that the average cost was
> partly determined by the standard cost and because the standard cost are
> not correct, the average cost was incorrect.
>
> So how is the average cost determined? And we are using the average
> cost method.
>
>
>
> ________________________________
>
> From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
> Of Mark Wonsil
> Sent: Wednesday, October 31, 2007 12:01 PM
> To: vantage@yahoogroups.com
> Subject: RE: [Vantage] Standard Cost
>
>
>
> Just to add to Scott's remarks:
>
> > Standard Cost are completely manually set.
>
> Standard costs can be set manually using Cost Adjustment or through the
> Costing Workbench when doing a Cost Roll Up, which is an "automatic" way
> to
> manually set the standard cost.
>
> ;-)
>
> I was told that Vantage always calculates every cost method but only
> uses the
> one that is set on the Part Plant record for the given plant. If the
> method is
> average, it really shouldn't matter what is in the standard cost fields.
>
> Mark W.
>
>
>
>
>
> [Non-text portions of this message have been removed]
>
Be careful setting costs "manually". Yes you can set them by cost
adjustment which our illustrious inventory person did. Then engineering ran
the cost roll up for all parts. That is recommended to keep your inventory
values current. Without a methods master to back up these costs they were
all zeroed out!

_____

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of
Mark Wonsil
Sent: Wednesday, October 31, 2007 2:01 PM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] Standard Cost

Just to add to Scott's remarks:

> Standard Cost are completely manually set.

Standard costs can be set manually using Cost Adjustment or through the
Costing Workbench when doing a Cost Roll Up, which is an "automatic" way to
manually set the standard cost.

;-)

I was told that Vantage always calculates every cost method but only uses
the
one that is set on the Part Plant record for the given plant. If the method
is
average, it really shouldn't matter what is in the standard cost fields.

Mark W.

[Non-text portions of this message have been removed]
The average cost is a weighted average of all receipt costs for a
specific part. This cost is recalculated every time you process a PO
receipt for a purchased item or a manufacturing receipt to stock from
a job.

The formula is (Previous On-Hand Quantity x Previous Unit Cost) +
(Receipt Quantity x Receipt Cost) / New Quantity On-Hand

This underlying business logic is the same in versions 5.2, 6.1 and
8.xx.

HTH

Claudia Stone
Aspacia Systems, Inc.

--- In vantage@yahoogroups.com, "Hernandez, Dolores" <dhernandez@...>
wrote:
>
> Our material manager was under the assumption that the average cost
was
> partly determined by the standard cost and because the standard
cost are
> not correct, the average cost was incorrect.
>
> So how is the average cost determined? And we are using the average
> cost method.
>
>
>
> ________________________________
>
> From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On
Behalf
> Of Mark Wonsil
> Sent: Wednesday, October 31, 2007 12:01 PM
> To: vantage@yahoogroups.com
> Subject: RE: [Vantage] Standard Cost
>
>
>
> Just to add to Scott's remarks:
>
> > Standard Cost are completely manually set.
>
> Standard costs can be set manually using Cost Adjustment or through
the
> Costing Workbench when doing a Cost Roll Up, which is
an "automatic" way
> to
> manually set the standard cost.
>
> ;-)
>
> I was told that Vantage always calculates every cost method but only
> uses the
> one that is set on the Part Plant record for the given plant. If the
> method is
> average, it really shouldn't matter what is in the standard cost
fields.
>
> Mark W.
>
>
>
>
>
> [Non-text portions of this message have been removed]
>