Using MISC charges to adjust for material cost using V6.0

You're welcome.



Edward F. Fox, Jr., CPA
Controller
Maxson Automatic Machinery Company
Phone 401-596-0162 . Fax 401-596-1050
<http://www.maxsonautomatic.com> www.maxsonautomatic.com

_____

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of
Paul Smith
Sent: Thursday, April 14, 2011 1:53 PM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] Using MISC charges to adjust for material cost using
V6.0





You have helped me immensely, thank you.

If you are not posting the "Capture COS/WIP" then no, it is not debiting and
crediting g/l accounts.

I'm not sure how large your company is and what your volume of transactions
is, but I started not posting the inventory system and have found it much
easier with the interface on. It may be something to consider, but it can
be a can of worms if all of your control accounts are not set up completely
and correctly.

Edward F. Fox, Jr., CPA
Controller
Maxson Automatic Machinery Company
Phone 401-596-0162 . Fax 401-596-1050
<http://www.maxsonautomatic.com> www.maxsonautomatic.com

_____

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> [mailto:vantage@yahoogroups.com
<mailto:vantage%40yahoogroups.com> <mailto:vantage%40yahoogroups.com>] On
Behalf Of
Paul Smith
Sent: Thursday, April 14, 2011 1:21 PM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Using MISC charges to adjust for material cost using
V6.0

Of course, makes sense. One last questioning of vantage logic. We do not
have the inventory interface checked in the system configuration and we do
not run the Inventory/WIP account reconciliation or the Capture COS/WIP
activity reports. Is vantage still crediting and debiting G\L accounts in
the background? Thanks again and I hope this question did not expose my
utter lack of understanding when it comes to G\L accounts and how vantage
moves money. Thank you.

Explain to them how the system works and what you are doing to minimize the
error since you know that is how it functions. For us, we carry very small
quantities of inventory so the total projected error is small enough to be
deemed immaterial by the auditors and is waived in their workpapers.

Edward F. Fox, Jr., CPA
Controller
Maxson Automatic Machinery Company
Phone 401-596-0162 . Fax 401-596-1050
<http://www.maxsonautomatic.com> www.maxsonautomatic.com

_____

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> [mailto:vantage@yahoogroups.com
<mailto:vantage%40yahoogroups.com> <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> <mailto:vantage%40yahoogroups.com>] On
Behalf Of
Paul Smith
Sent: Thursday, April 14, 2011 12:45 PM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Using MISC charges to adjust for material cost using
V6.0

Mr Fox

Thank you again for your help. So vantage will move the cost difference to a
G\L account specified either from the default control accounts or the
account specified for the misc charge, but it will not correctly adjust the
cost of the material for inventory. OK, from a CPA standpoint what do you
say to the auditors when they test costing of material and there is a
difference between the price in vantage and the price paid? Again, thank you
for your help.

Paul,

That is exactly the way it works. If A/P just changed the unit price then
the variance would go to your purchase price variance account, but since you
are using a misc charge it will go to the g/l a/c assigned to that charge.
The only way we have found to receive the inventory cost in at the vendor
price in ($21 vs. $20) is to unreceive the PO, fix the price and re-receive
it. That has a whole new set of issues so we do not do this and rather let
the difference go to variance. To prevent this on future orders we will
update the price list so the new price defaults on the new PO.

Edward F. Fox, Jr., CPA
Controller
Maxson Automatic Machinery Company
Phone 401-596-0162 . Fax 401-596-1050
<http://www.maxsonautomatic.com> www.maxsonautomatic.com

_____

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> [mailto:vantage@yahoogroups.com
<mailto:vantage%40yahoogroups.com> <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> <mailto:vantage%40yahoogroups.com>] On
Behalf Of
Paul Smith
Sent: Thursday, April 14, 2011 11:13 AM
To: Vantage (vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>)
Subject: [Vantage] Using MISC charges to adjust for material cost using V6.0

Trying to help figure out what vantage 6.0 is doing. When paying invoices
there are times when we have to adjust the cost due to various reasons.
Example, we ordered 100ft spool of common lead wire. 10ft ordered for job
XYZ, 10ft ordered for job ZYX and the balance will be ordered to inventory
(80ft). For some reason the cost we initially placed on the purchase order
is no different from the invoice cost. So the accounting department will
create misc charges for each of the three lines to get the correct cost on
the material. They are telling me the two lines for the jobs will show a
cost adjustment ON THE JOB, but there will be no cost adjustment to the
inventory side. Example the cost of the 80ft to inventory was $20.00, we
need to do a misc charge to show that the actual cost is $21.00. They
conduct the misc charge but the material is still in stock with the cost of
$20.00, not $21.00. Is using the misc charge the proper way to adjust for a
different cost of material? If not what is the correct way to get the proper
cost to inventory. Thanks in advance.

Paul Smith
Inventory Management
233 Ballston Ave
Saratoga Springs NY, 12866
518-245-4358

________________________________

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[Non-text portions of this message have been removed]
Trying to help figure out what vantage 6.0 is doing. When paying invoices there are times when we have to adjust the cost due to various reasons. Example, we ordered 100ft spool of common lead wire. 10ft ordered for job XYZ, 10ft ordered for job ZYX and the balance will be ordered to inventory (80ft). For some reason the cost we initially placed on the purchase order is no different from the invoice cost. So the accounting department will create misc charges for each of the three lines to get the correct cost on the material. They are telling me the two lines for the jobs will show a cost adjustment ON THE JOB, but there will be no cost adjustment to the inventory side. Example the cost of the 80ft to inventory was $20.00, we need to do a misc charge to show that the actual cost is $21.00. They conduct the misc charge but the material is still in stock with the cost of $20.00, not $21.00. Is using the misc charge the proper way to adjust for a different cost of material? If not what is the correct way to get the proper cost to inventory. Thanks in advance.





Paul Smith
Inventory Management
233 Ballston Ave
Saratoga Springs NY, 12866
518-245-4358




________________________________


The information contained in this message is intended solely for the individual it is specifically and originally addressed. This message and its contents may contain confidential or privileged information. If you are not the intended recipient, you are hereby notified that any disclosure or distribution, or taking any action in reliance on the content of this information is strictly prohibited. If you received this message in error, please delete it from any computer and notify the sender. If you suspect that this message may have been altered, please notify the sender.


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



That is exactly the way it works. If A/P just changed the unit price then
the variance would go to your purchase price variance account, but since you
are using a misc charge it will go to the g/l a/c assigned to that charge.
The only way we have found to receive the inventory cost in at the vendor
price in ($21 vs. $20) is to unreceive the PO, fix the price and re-receive
it. That has a whole new set of issues so we do not do this and rather let
the difference go to variance. To prevent this on future orders we will
update the price list so the new price defaults on the new PO.



Edward F. Fox, Jr., CPA
Controller
Maxson Automatic Machinery Company
Phone 401-596-0162 . Fax 401-596-1050
<http://www.maxsonautomatic.com> www.maxsonautomatic.com

_____

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of
Paul Smith
Sent: Thursday, April 14, 2011 11:13 AM
To: Vantage (vantage@yahoogroups.com)
Subject: [Vantage] Using MISC charges to adjust for material cost using V6.0





Trying to help figure out what vantage 6.0 is doing. When paying invoices
there are times when we have to adjust the cost due to various reasons.
Example, we ordered 100ft spool of common lead wire. 10ft ordered for job
XYZ, 10ft ordered for job ZYX and the balance will be ordered to inventory
(80ft). For some reason the cost we initially placed on the purchase order
is no different from the invoice cost. So the accounting department will
create misc charges for each of the three lines to get the correct cost on
the material. They are telling me the two lines for the jobs will show a
cost adjustment ON THE JOB, but there will be no cost adjustment to the
inventory side. Example the cost of the 80ft to inventory was $20.00, we
need to do a misc charge to show that the actual cost is $21.00. They
conduct the misc charge but the material is still in stock with the cost of
$20.00, not $21.00. Is using the misc charge the proper way to adjust for a
different cost of material? If not what is the correct way to get the proper
cost to inventory. Thanks in advance.

Paul Smith
Inventory Management
233 Ballston Ave
Saratoga Springs NY, 12866
518-245-4358

________________________________

The information contained in this message is intended solely for the
individual it is specifically and originally addressed. This message and its
contents may contain confidential or privileged information. If you are not
the intended recipient, you are hereby notified that any disclosure or
distribution, or taking any action in reliance on the content of this
information is strictly prohibited. If you received this message in error,
please delete it from any computer and notify the sender. If you suspect
that this message may have been altered, please notify the sender.

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





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database 6041 (20110414) __________

The message was checked by ESET NOD32 Antivirus.

http://www.eset.com



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

Thank you again for your help. So vantage will move the cost difference to a G\L account specified either from the default control accounts or the account specified for the misc charge, but it will not correctly adjust the cost of the material for inventory. OK, from a CPA standpoint what do you say to the auditors when they test costing of material and there is a difference between the price in vantage and the price paid? Again, thank you for your help.













Paul,

That is exactly the way it works. If A/P just changed the unit price then
the variance would go to your purchase price variance account, but since you
are using a misc charge it will go to the g/l a/c assigned to that charge.
The only way we have found to receive the inventory cost in at the vendor
price in ($21 vs. $20) is to unreceive the PO, fix the price and re-receive
it. That has a whole new set of issues so we do not do this and rather let
the difference go to variance. To prevent this on future orders we will
update the price list so the new price defaults on the new PO.

Edward F. Fox, Jr., CPA
Controller
Maxson Automatic Machinery Company
Phone 401-596-0162 . Fax 401-596-1050
<http://www.maxsonautomatic.com> www.maxsonautomatic.com

_____

From: vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com> [mailto:vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com>] On Behalf Of
Paul Smith
Sent: Thursday, April 14, 2011 11:13 AM
To: Vantage (vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com>)
Subject: [Vantage] Using MISC charges to adjust for material cost using V6.0

Trying to help figure out what vantage 6.0 is doing. When paying invoices
there are times when we have to adjust the cost due to various reasons.
Example, we ordered 100ft spool of common lead wire. 10ft ordered for job
XYZ, 10ft ordered for job ZYX and the balance will be ordered to inventory
(80ft). For some reason the cost we initially placed on the purchase order
is no different from the invoice cost. So the accounting department will
create misc charges for each of the three lines to get the correct cost on
the material. They are telling me the two lines for the jobs will show a
cost adjustment ON THE JOB, but there will be no cost adjustment to the
inventory side. Example the cost of the 80ft to inventory was $20.00, we
need to do a misc charge to show that the actual cost is $21.00. They
conduct the misc charge but the material is still in stock with the cost of
$20.00, not $21.00. Is using the misc charge the proper way to adjust for a
different cost of material? If not what is the correct way to get the proper
cost to inventory. Thanks in advance.

Paul Smith
Inventory Management
233 Ballston Ave
Saratoga Springs NY, 12866
518-245-4358

________________________________

The information contained in this message is intended solely for the
individual it is specifically and originally addressed. This message and its
contents may contain confidential or privileged information. If you are not
the intended recipient, you are hereby notified that any disclosure or
distribution, or taking any action in reliance on the content of this
information is strictly prohibited. If you received this message in error,
please delete it from any computer and notify the sender. If you suspect
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[Non-text portions of this message have been removed]

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The message was checked by ESET NOD32 Antivirus.

http://www.eset.com

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





________________________________


The information contained in this message is intended solely for the individual it is specifically and originally addressed. This message and its contents may contain confidential or privileged information. If you are not the intended recipient, you are hereby notified that any disclosure or distribution, or taking any action in reliance on the content of this information is strictly prohibited. If you received this message in error, please delete it from any computer and notify the sender. If you suspect that this message may have been altered, please notify the sender.


[Non-text portions of this message have been removed]
Explain to them how the system works and what you are doing to minimize the
error since you know that is how it functions. For us, we carry very small
quantities of inventory so the total projected error is small enough to be
deemed immaterial by the auditors and is waived in their workpapers.



Edward F. Fox, Jr., CPA
Controller
Maxson Automatic Machinery Company
Phone 401-596-0162 . Fax 401-596-1050
<http://www.maxsonautomatic.com> www.maxsonautomatic.com

_____

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of
Paul Smith
Sent: Thursday, April 14, 2011 12:45 PM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] Using MISC charges to adjust for material cost using
V6.0





Mr Fox

Thank you again for your help. So vantage will move the cost difference to a
G\L account specified either from the default control accounts or the
account specified for the misc charge, but it will not correctly adjust the
cost of the material for inventory. OK, from a CPA standpoint what do you
say to the auditors when they test costing of material and there is a
difference between the price in vantage and the price paid? Again, thank you
for your help.

Paul,

That is exactly the way it works. If A/P just changed the unit price then
the variance would go to your purchase price variance account, but since you
are using a misc charge it will go to the g/l a/c assigned to that charge.
The only way we have found to receive the inventory cost in at the vendor
price in ($21 vs. $20) is to unreceive the PO, fix the price and re-receive
it. That has a whole new set of issues so we do not do this and rather let
the difference go to variance. To prevent this on future orders we will
update the price list so the new price defaults on the new PO.

Edward F. Fox, Jr., CPA
Controller
Maxson Automatic Machinery Company
Phone 401-596-0162 . Fax 401-596-1050
<http://www.maxsonautomatic.com> www.maxsonautomatic.com

_____

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> [mailto:vantage@yahoogroups.com
<mailto:vantage%40yahoogroups.com> <mailto:vantage%40yahoogroups.com>] On
Behalf Of
Paul Smith
Sent: Thursday, April 14, 2011 11:13 AM
To: Vantage (vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>)
Subject: [Vantage] Using MISC charges to adjust for material cost using V6.0

Trying to help figure out what vantage 6.0 is doing. When paying invoices
there are times when we have to adjust the cost due to various reasons.
Example, we ordered 100ft spool of common lead wire. 10ft ordered for job
XYZ, 10ft ordered for job ZYX and the balance will be ordered to inventory
(80ft). For some reason the cost we initially placed on the purchase order
is no different from the invoice cost. So the accounting department will
create misc charges for each of the three lines to get the correct cost on
the material. They are telling me the two lines for the jobs will show a
cost adjustment ON THE JOB, but there will be no cost adjustment to the
inventory side. Example the cost of the 80ft to inventory was $20.00, we
need to do a misc charge to show that the actual cost is $21.00. They
conduct the misc charge but the material is still in stock with the cost of
$20.00, not $21.00. Is using the misc charge the proper way to adjust for a
different cost of material? If not what is the correct way to get the proper
cost to inventory. Thanks in advance.

Paul Smith
Inventory Management
233 Ballston Ave
Saratoga Springs NY, 12866
518-245-4358

________________________________

The information contained in this message is intended solely for the
individual it is specifically and originally addressed. This message and its
contents may contain confidential or privileged information. If you are not
the intended recipient, you are hereby notified that any disclosure or
distribution, or taking any action in reliance on the content of this
information is strictly prohibited. If you received this message in error,
please delete it from any computer and notify the sender. If you suspect
that this message may have been altered, please notify the sender.

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

__________ Information from ESET NOD32 Antivirus, version of virus signature
database 6041 (20110414) __________

The message was checked by ESET NOD32 Antivirus.

http://www.eset.com

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

________________________________

The information contained in this message is intended solely for the
individual it is specifically and originally addressed. This message and its
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the intended recipient, you are hereby notified that any disclosure or
distribution, or taking any action in reliance on the content of this
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[Non-text portions of this message have been removed]
Of course, makes sense. One last questioning of vantage logic. We do not have the inventory interface checked in the system configuration and we do not run the Inventory/WIP account reconciliation or the Capture COS/WIP activity reports. Is vantage still crediting and debiting G\L accounts in the background? Thanks again and I hope this question did not expose my utter lack of understanding when it comes to G\L accounts and how vantage moves money. Thank you.














Explain to them how the system works and what you are doing to minimize the
error since you know that is how it functions. For us, we carry very small
quantities of inventory so the total projected error is small enough to be
deemed immaterial by the auditors and is waived in their workpapers.

Edward F. Fox, Jr., CPA
Controller
Maxson Automatic Machinery Company
Phone 401-596-0162 . Fax 401-596-1050
<http://www.maxsonautomatic.com> www.maxsonautomatic.com

_____

From: vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com> [mailto:vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com>] On Behalf Of
Paul Smith
Sent: Thursday, April 14, 2011 12:45 PM
To: vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Using MISC charges to adjust for material cost using
V6.0

Mr Fox

Thank you again for your help. So vantage will move the cost difference to a
G\L account specified either from the default control accounts or the
account specified for the misc charge, but it will not correctly adjust the
cost of the material for inventory. OK, from a CPA standpoint what do you
say to the auditors when they test costing of material and there is a
difference between the price in vantage and the price paid? Again, thank you
for your help.

Paul,

That is exactly the way it works. If A/P just changed the unit price then
the variance would go to your purchase price variance account, but since you
are using a misc charge it will go to the g/l a/c assigned to that charge.
The only way we have found to receive the inventory cost in at the vendor
price in ($21 vs. $20) is to unreceive the PO, fix the price and re-receive
it. That has a whole new set of issues so we do not do this and rather let
the difference go to variance. To prevent this on future orders we will
update the price list so the new price defaults on the new PO.

Edward F. Fox, Jr., CPA
Controller
Maxson Automatic Machinery Company
Phone 401-596-0162 . Fax 401-596-1050
<http://www.maxsonautomatic.com> www.maxsonautomatic.com

_____

From: vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com> <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> [mailto:vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> <mailto:vantage%40yahoogroups.com>] On
Behalf Of
Paul Smith
Sent: Thursday, April 14, 2011 11:13 AM
To: Vantage (vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com> <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>)
Subject: [Vantage] Using MISC charges to adjust for material cost using V6.0

Trying to help figure out what vantage 6.0 is doing. When paying invoices
there are times when we have to adjust the cost due to various reasons.
Example, we ordered 100ft spool of common lead wire. 10ft ordered for job
XYZ, 10ft ordered for job ZYX and the balance will be ordered to inventory
(80ft). For some reason the cost we initially placed on the purchase order
is no different from the invoice cost. So the accounting department will
create misc charges for each of the three lines to get the correct cost on
the material. They are telling me the two lines for the jobs will show a
cost adjustment ON THE JOB, but there will be no cost adjustment to the
inventory side. Example the cost of the 80ft to inventory was $20.00, we
need to do a misc charge to show that the actual cost is $21.00. They
conduct the misc charge but the material is still in stock with the cost of
$20.00, not $21.00. Is using the misc charge the proper way to adjust for a
different cost of material? If not what is the correct way to get the proper
cost to inventory. Thanks in advance.

Paul Smith
Inventory Management
233 Ballston Ave
Saratoga Springs NY, 12866
518-245-4358

________________________________

The information contained in this message is intended solely for the
individual it is specifically and originally addressed. This message and its
contents may contain confidential or privileged information. If you are not
the intended recipient, you are hereby notified that any disclosure or
distribution, or taking any action in reliance on the content of this
information is strictly prohibited. If you received this message in error,
please delete it from any computer and notify the sender. If you suspect
that this message may have been altered, please notify the sender.

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

__________ Information from ESET NOD32 Antivirus, version of virus signature
database 6041 (20110414) __________

The message was checked by ESET NOD32 Antivirus.

http://www.eset.com

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

________________________________

The information contained in this message is intended solely for the
individual it is specifically and originally addressed. This message and its
contents may contain confidential or privileged information. If you are not
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[Non-text portions of this message have been removed]

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The information contained in this message is intended solely for the individual it is specifically and originally addressed. This message and its contents may contain confidential or privileged information. If you are not the intended recipient, you are hereby notified that any disclosure or distribution, or taking any action in reliance on the content of this information is strictly prohibited. If you received this message in error, please delete it from any computer and notify the sender. If you suspect that this message may have been altered, please notify the sender.


[Non-text portions of this message have been removed]
If you are not posting the "Capture COS/WIP" then no, it is not debiting and
crediting g/l accounts.



I'm not sure how large your company is and what your volume of transactions
is, but I started not posting the inventory system and have found it much
easier with the interface on. It may be something to consider, but it can
be a can of worms if all of your control accounts are not set up completely
and correctly.



Edward F. Fox, Jr., CPA
Controller
Maxson Automatic Machinery Company
Phone 401-596-0162 . Fax 401-596-1050
<http://www.maxsonautomatic.com> www.maxsonautomatic.com

_____

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of
Paul Smith
Sent: Thursday, April 14, 2011 1:21 PM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] Using MISC charges to adjust for material cost using
V6.0





Of course, makes sense. One last questioning of vantage logic. We do not
have the inventory interface checked in the system configuration and we do
not run the Inventory/WIP account reconciliation or the Capture COS/WIP
activity reports. Is vantage still crediting and debiting G\L accounts in
the background? Thanks again and I hope this question did not expose my
utter lack of understanding when it comes to G\L accounts and how vantage
moves money. Thank you.

Explain to them how the system works and what you are doing to minimize the
error since you know that is how it functions. For us, we carry very small
quantities of inventory so the total projected error is small enough to be
deemed immaterial by the auditors and is waived in their workpapers.

Edward F. Fox, Jr., CPA
Controller
Maxson Automatic Machinery Company
Phone 401-596-0162 . Fax 401-596-1050
<http://www.maxsonautomatic.com> www.maxsonautomatic.com

_____

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> [mailto:vantage@yahoogroups.com
<mailto:vantage%40yahoogroups.com> <mailto:vantage%40yahoogroups.com>] On
Behalf Of
Paul Smith
Sent: Thursday, April 14, 2011 12:45 PM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Using MISC charges to adjust for material cost using
V6.0

Mr Fox

Thank you again for your help. So vantage will move the cost difference to a
G\L account specified either from the default control accounts or the
account specified for the misc charge, but it will not correctly adjust the
cost of the material for inventory. OK, from a CPA standpoint what do you
say to the auditors when they test costing of material and there is a
difference between the price in vantage and the price paid? Again, thank you
for your help.

Paul,

That is exactly the way it works. If A/P just changed the unit price then
the variance would go to your purchase price variance account, but since you
are using a misc charge it will go to the g/l a/c assigned to that charge.
The only way we have found to receive the inventory cost in at the vendor
price in ($21 vs. $20) is to unreceive the PO, fix the price and re-receive
it. That has a whole new set of issues so we do not do this and rather let
the difference go to variance. To prevent this on future orders we will
update the price list so the new price defaults on the new PO.

Edward F. Fox, Jr., CPA
Controller
Maxson Automatic Machinery Company
Phone 401-596-0162 . Fax 401-596-1050
<http://www.maxsonautomatic.com> www.maxsonautomatic.com

_____

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> [mailto:vantage@yahoogroups.com
<mailto:vantage%40yahoogroups.com> <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> <mailto:vantage%40yahoogroups.com>] On
Behalf Of
Paul Smith
Sent: Thursday, April 14, 2011 11:13 AM
To: Vantage (vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>)
Subject: [Vantage] Using MISC charges to adjust for material cost using V6.0

Trying to help figure out what vantage 6.0 is doing. When paying invoices
there are times when we have to adjust the cost due to various reasons.
Example, we ordered 100ft spool of common lead wire. 10ft ordered for job
XYZ, 10ft ordered for job ZYX and the balance will be ordered to inventory
(80ft). For some reason the cost we initially placed on the purchase order
is no different from the invoice cost. So the accounting department will
create misc charges for each of the three lines to get the correct cost on
the material. They are telling me the two lines for the jobs will show a
cost adjustment ON THE JOB, but there will be no cost adjustment to the
inventory side. Example the cost of the 80ft to inventory was $20.00, we
need to do a misc charge to show that the actual cost is $21.00. They
conduct the misc charge but the material is still in stock with the cost of
$20.00, not $21.00. Is using the misc charge the proper way to adjust for a
different cost of material? If not what is the correct way to get the proper
cost to inventory. Thanks in advance.

Paul Smith
Inventory Management
233 Ballston Ave
Saratoga Springs NY, 12866
518-245-4358

________________________________

The information contained in this message is intended solely for the
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contents may contain confidential or privileged information. If you are not
the intended recipient, you are hereby notified that any disclosure or
distribution, or taking any action in reliance on the content of this
information is strictly prohibited. If you received this message in error,
please delete it from any computer and notify the sender. If you suspect
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[Non-text portions of this message have been removed]

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database 6041 (20110414) __________

The message was checked by ESET NOD32 Antivirus.

http://www.eset.com

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

________________________________

The information contained in this message is intended solely for the
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the intended recipient, you are hereby notified that any disclosure or
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[Non-text portions of this message have been removed]

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

________________________________

The information contained in this message is intended solely for the
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[Non-text portions of this message have been removed]





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[Non-text portions of this message have been removed]
You have helped me immensely, thank you.













If you are not posting the "Capture COS/WIP" then no, it is not debiting and
crediting g/l accounts.

I'm not sure how large your company is and what your volume of transactions
is, but I started not posting the inventory system and have found it much
easier with the interface on. It may be something to consider, but it can
be a can of worms if all of your control accounts are not set up completely
and correctly.

Edward F. Fox, Jr., CPA
Controller
Maxson Automatic Machinery Company
Phone 401-596-0162 . Fax 401-596-1050
<http://www.maxsonautomatic.com> www.maxsonautomatic.com

_____

From: vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com> [mailto:vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com>] On Behalf Of
Paul Smith
Sent: Thursday, April 14, 2011 1:21 PM
To: vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Using MISC charges to adjust for material cost using
V6.0

Of course, makes sense. One last questioning of vantage logic. We do not
have the inventory interface checked in the system configuration and we do
not run the Inventory/WIP account reconciliation or the Capture COS/WIP
activity reports. Is vantage still crediting and debiting G\L accounts in
the background? Thanks again and I hope this question did not expose my
utter lack of understanding when it comes to G\L accounts and how vantage
moves money. Thank you.

Explain to them how the system works and what you are doing to minimize the
error since you know that is how it functions. For us, we carry very small
quantities of inventory so the total projected error is small enough to be
deemed immaterial by the auditors and is waived in their workpapers.

Edward F. Fox, Jr., CPA
Controller
Maxson Automatic Machinery Company
Phone 401-596-0162 . Fax 401-596-1050
<http://www.maxsonautomatic.com> www.maxsonautomatic.com

_____

From: vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com> <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> [mailto:vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> <mailto:vantage%40yahoogroups.com>] On
Behalf Of
Paul Smith
Sent: Thursday, April 14, 2011 12:45 PM
To: vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com> <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Using MISC charges to adjust for material cost using
V6.0

Mr Fox

Thank you again for your help. So vantage will move the cost difference to a
G\L account specified either from the default control accounts or the
account specified for the misc charge, but it will not correctly adjust the
cost of the material for inventory. OK, from a CPA standpoint what do you
say to the auditors when they test costing of material and there is a
difference between the price in vantage and the price paid? Again, thank you
for your help.

Paul,

That is exactly the way it works. If A/P just changed the unit price then
the variance would go to your purchase price variance account, but since you
are using a misc charge it will go to the g/l a/c assigned to that charge.
The only way we have found to receive the inventory cost in at the vendor
price in ($21 vs. $20) is to unreceive the PO, fix the price and re-receive
it. That has a whole new set of issues so we do not do this and rather let
the difference go to variance. To prevent this on future orders we will
update the price list so the new price defaults on the new PO.

Edward F. Fox, Jr., CPA
Controller
Maxson Automatic Machinery Company
Phone 401-596-0162 . Fax 401-596-1050
<http://www.maxsonautomatic.com> www.maxsonautomatic.com

_____

From: vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com> <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> [mailto:vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> <mailto:vantage%40yahoogroups.com>] On
Behalf Of
Paul Smith
Sent: Thursday, April 14, 2011 11:13 AM
To: Vantage (vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com> <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>)
Subject: [Vantage] Using MISC charges to adjust for material cost using V6.0

Trying to help figure out what vantage 6.0 is doing. When paying invoices
there are times when we have to adjust the cost due to various reasons.
Example, we ordered 100ft spool of common lead wire. 10ft ordered for job
XYZ, 10ft ordered for job ZYX and the balance will be ordered to inventory
(80ft). For some reason the cost we initially placed on the purchase order
is no different from the invoice cost. So the accounting department will
create misc charges for each of the three lines to get the correct cost on
the material. They are telling me the two lines for the jobs will show a
cost adjustment ON THE JOB, but there will be no cost adjustment to the
inventory side. Example the cost of the 80ft to inventory was $20.00, we
need to do a misc charge to show that the actual cost is $21.00. They
conduct the misc charge but the material is still in stock with the cost of
$20.00, not $21.00. Is using the misc charge the proper way to adjust for a
different cost of material? If not what is the correct way to get the proper
cost to inventory. Thanks in advance.

Paul Smith
Inventory Management
233 Ballston Ave
Saratoga Springs NY, 12866
518-245-4358

________________________________

The information contained in this message is intended solely for the
individual it is specifically and originally addressed. This message and its
contents may contain confidential or privileged information. If you are not
the intended recipient, you are hereby notified that any disclosure or
distribution, or taking any action in reliance on the content of this
information is strictly prohibited. If you received this message in error,
please delete it from any computer and notify the sender. If you suspect
that this message may have been altered, please notify the sender.

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

__________ Information from ESET NOD32 Antivirus, version of virus signature
database 6041 (20110414) __________

The message was checked by ESET NOD32 Antivirus.

http://www.eset.com

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

________________________________

The information contained in this message is intended solely for the
individual it is specifically and originally addressed. This message and its
contents may contain confidential or privileged information. If you are not
the intended recipient, you are hereby notified that any disclosure or
distribution, or taking any action in reliance on the content of this
information is strictly prohibited. If you received this message in error,
please delete it from any computer and notify the sender. If you suspect
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[Non-text portions of this message have been removed]

__________ Information from ESET NOD32 Antivirus, version of virus signature
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The message was checked by ESET NOD32 Antivirus.

http://www.eset.com

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

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The information contained in this message is intended solely for the
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the intended recipient, you are hereby notified that any disclosure or
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please delete it from any computer and notify the sender. If you suspect
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[Non-text portions of this message have been removed]

__________ Information from ESET NOD32 Antivirus, version of virus signature
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The message was checked by ESET NOD32 Antivirus.

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The information contained in this message is intended solely for the individual it is specifically and originally addressed. This message and its contents may contain confidential or privileged information. If you are not the intended recipient, you are hereby notified that any disclosure or distribution, or taking any action in reliance on the content of this information is strictly prohibited. If you received this message in error, please delete it from any computer and notify the sender. If you suspect that this message may have been altered, please notify the sender.


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