Hello everyone,
To all of you, May all your wishes come true in 2023.
I have two questions related to cost.
We use the Std Cost method and periodically update the Std Cost.
Q1. I want to see the history of Std cost updated periodically. Is there the menu to see the change history of past Std cost?
Q2. Our cost method is Std, but the last cost is displayed as well. The last cost of raw materials is displayed at the last purchased price. However, the last cost of the finished goods are displayed as an unknown cost. We create jobs, but we do not use Labor and Burden, only Materials and Operation. How is the last cost of FG calculated in the Std cost setting? Why is this unknown cost displayed?
I expected that the last cost of this FG would be calculated as the sum of the last purchase prices of RMs. (Because labor and burden are not used, there is only material cost). But, a completely different cost came out.(29,940). So I’m wondering what the last cost calculation of FG is. (Because I don’t think it’s a calculation I know)
I’m not an expert in this area, but I would just trace it backwards through the materials, operations, etc, and make sure there is no costing there that was set up by mistake.
A1) The Information should be in the Costing Workbench Tables. (Use Field help in Costing WB to find)
A2) The last PartTran record is the transaction that sets the Last Cost. It may be a job receipt or not. That is why Tim warns about relying on it too much. If you are Standard Cost, there is no financial effect from the Last Cost.
Q1: Part Transaction History Tracker - filter by transaction type ADJ-CST. If you use the cost roll-up you can also filter by Reference=‘Standard Cost roll-up’ to see all roll-ups
Q2: Last cost is the last PO or Job cost (last positive entry in your inventory).
Let’s say you have part X with STD cost set to 100 and a PO with unit cost 110. When you receive the PO: last cost will be 110, 110-100=10 will go into PPV, and the standard cost will always remain the same 100.
You’ll see the PUR-STK transaction for 110 immediately followed by an ADJ-CST with -10 made by Epicor automatically.
Thank you for your feedback.
Your response to Q1 is interesting. But, we have to query the parts one by one in the Part Transaction History Tracker. I was wondering if there is a feature that can be viewed all at once. But it seems like a great alternative.
Your response to Q2 seems to be about purchases. I was wondering about the last cost calculation logic of the finished good.
We know that FG’s last cost will come from the last MFG-STK transaction. But, I’m asking this question because I’ve gotten results that aren’t the case.
As shown below, the last cost of any one part is 64,650. But the last MFG-STK cost 61,518. So I was wondering if there is any other logic other than the Last cost calculation logic I know of.
Since we are using the Std cost, this is not a critical problem. just my curiosity
PTHT uses the table PartTran so I guess you could do a dashboard and show those transactions types there. The problem with that is the cost roll-up will adjust all on-hand stock: if you have on-hand qty’s in 50 bins, it will do 50 cost adjustment for the same roll-up. Maybe if you have like a ‘main’ warehouse or something and filter by that too.
It goes the same for the jobs:
Let’s say you have part X with STD cost set to 100 and a job with unit cost 110. When you receive the job into inventory: last cost will be 110, 110-100=10 will go into WOV, and the standard cost will always remain the same 100. You’ll see the MFG-STK transaction for 110 immediately followed by an ADJ-CST with -10 made by Epicor automatically.
@pilio.lee It says this is solved but you seem to still have questions about last cost, right?
So, in your last post, you aren’t showing a picture of anything labeled MFG-STK. Can you show a picture of Part Transaction History Tracker for the finished part, maybe filtered on MFG-STK? It’s the Unit costs I’m curious about.
I get that you are saying that the job cost is 6,151,800 and probably for 100 pieces, so the per-each cost is 61,518. But if you don’t complete all 100 at once, and/or you don’t charge all of the material and subcontract in-sync with those receipts, it can skew the last and average numbers.
Also, very good point by @Mark_Wonsil - if you bought some of these, that could also be your last cost…
While looking for a combination of youguys’ opinions, I think I solved my curiosity.
In the Std cost method, Part trans cost is only represented as Std cost.
FG’s last cost is the last cost of “???-STK”, not the last of “MFG-STK”.
There have been no transactions since the Std cost update, so the last cost was 64,650 which was the Std cost before the update.
All other FGs were also calculated with this logic. In conclusion, in the Std cost method, the last cost of FG displayed is meaningless.
Thanks to all of you for giving me insight.
