I just thought I would see if any one else has the same opinion about a
change made to STD costing.
In patch 322 for version 5 they have made the following change that makes a
standard cost environment a mess:
When creating a Receipt from Manufacturing the cost that is used is the Jobs
actual cost NOT the Standard cost that the part is purposely marked with.
It the makes an adjustment to inventory to bring that cost back up to
standard creating an entry into an inventory adjustments account.
Below is what support has sent me saying this change is how it is supposed
to work. Does any one else agree with me their logic is wrong? If you are
using standard cost then that is what should be pulled from the job NOT the
actual. This effects the Inventory adjustments account along with the Work
order variance account. We use the work order variance to help us determine
how we are doing on jobs overall. We can no longer do that with this logic.
We will now also have to make journal entries to clean up the inventory
adjustment account and the Work order variance account. What a mess!
I would like to get this changed back to how it was before 5.00.322. If you
agree with me please call support or submit a change request.
Thank you,
Erica A. Steffens
System Administrator
Jerneen Micro Medical Technologies Inc.
ESteffens@...
Page ID 5626MPS
PROBLEM DESCRIPTION:
ADJ-CST being created for a Standard costed part when MFG-STK transaction is
created and is using the cost from the Job and not the Standard.
Customer stated that this is different than the way it was working in
5.00.317
STEPS TO DUPLICATE:
MnTech 5.00.323
Create a Job for a Standard Costed part.
Job = #2904
Part = stdmfgpart
Qty = 10
Standard = $35
Processed labor against Job #2904 & completed operation.
Processed Receipts from Mfg for Job #2904 Qty of 10
Per Production Detail Report Unit costs for the material on the job = $84.80
Viewing the Inventory/WIP Reconcilation report you can see a transaction
DEBIT Inventory $848.00 (10 x 84.80)
CREDIT WIP accounts $848.00
There is also an ADJ-CST transaction created so that the dollars in
Inventory will equal the Standard Cost.
ADJ-CST CREDIT Inventory $498.00
ADJ-CST DEBIT Inventory Adjustment $498.00
848.00 (job unit cost) minus 350 (standard cost >10 x $35) = $498
adjustment.
Per Call #682743MPS the Standard Costed Part should be issued off the job at
the Standard Cost and Not the Cost from the Job.
RESPONSE FROM DEVELOPMENT:
Working as designed.
MFG-STK is working the same as a PO to Stock at Standard Cost.
By receiving from a Job to Stock at Standard cost, in some cases may cause
negative WIP and a false sence of variance.
Also, the reason for the change was because the total unit cost of a part is
made up of labor, burden, material and therefore sits on the job at the
total cost in material. If it were to be releived at Standard, it was
trying to pull out those costs by the bucket and not the total material.
This issue will be discussed further.
WORKAROUND:
ADDITIONAL INFORMATION:
VERSION: 5.00.323
change made to STD costing.
In patch 322 for version 5 they have made the following change that makes a
standard cost environment a mess:
When creating a Receipt from Manufacturing the cost that is used is the Jobs
actual cost NOT the Standard cost that the part is purposely marked with.
It the makes an adjustment to inventory to bring that cost back up to
standard creating an entry into an inventory adjustments account.
Below is what support has sent me saying this change is how it is supposed
to work. Does any one else agree with me their logic is wrong? If you are
using standard cost then that is what should be pulled from the job NOT the
actual. This effects the Inventory adjustments account along with the Work
order variance account. We use the work order variance to help us determine
how we are doing on jobs overall. We can no longer do that with this logic.
We will now also have to make journal entries to clean up the inventory
adjustment account and the Work order variance account. What a mess!
I would like to get this changed back to how it was before 5.00.322. If you
agree with me please call support or submit a change request.
Thank you,
Erica A. Steffens
System Administrator
Jerneen Micro Medical Technologies Inc.
ESteffens@...
Page ID 5626MPS
PROBLEM DESCRIPTION:
ADJ-CST being created for a Standard costed part when MFG-STK transaction is
created and is using the cost from the Job and not the Standard.
Customer stated that this is different than the way it was working in
5.00.317
STEPS TO DUPLICATE:
MnTech 5.00.323
Create a Job for a Standard Costed part.
Job = #2904
Part = stdmfgpart
Qty = 10
Standard = $35
Processed labor against Job #2904 & completed operation.
Processed Receipts from Mfg for Job #2904 Qty of 10
Per Production Detail Report Unit costs for the material on the job = $84.80
Viewing the Inventory/WIP Reconcilation report you can see a transaction
DEBIT Inventory $848.00 (10 x 84.80)
CREDIT WIP accounts $848.00
There is also an ADJ-CST transaction created so that the dollars in
Inventory will equal the Standard Cost.
ADJ-CST CREDIT Inventory $498.00
ADJ-CST DEBIT Inventory Adjustment $498.00
848.00 (job unit cost) minus 350 (standard cost >10 x $35) = $498
adjustment.
Per Call #682743MPS the Standard Costed Part should be issued off the job at
the Standard Cost and Not the Cost from the Job.
RESPONSE FROM DEVELOPMENT:
Working as designed.
MFG-STK is working the same as a PO to Stock at Standard Cost.
By receiving from a Job to Stock at Standard cost, in some cases may cause
negative WIP and a false sence of variance.
Also, the reason for the change was because the total unit cost of a part is
made up of labor, burden, material and therefore sits on the job at the
total cost in material. If it were to be releived at Standard, it was
trying to pull out those costs by the bucket and not the total material.
This issue will be discussed further.
WORKAROUND:
ADDITIONAL INFORMATION:
VERSION: 5.00.323