is there a way to automate the part costing automatically instead of running each and every step manually after changing the price in supplier for purchase part. we are using standard costing method. Once the supplier for purchase part price is changed , each time we have to go to part costs , run the cost for cost set 6 then run all level part costing , then copy cost set to cost set 1 .
Question
Part costing automation
I’m surprised if you are using standard costing that the cost is changed when the supplier price is updated. Most accounting practices would have you update standard cost only on a periodic (annual) or planned basis.
Are you actually changing inventory value every time you do this update?
We would run afoul of accounting if we followed this sequence. Our process is to update the SfPP Price, then update the Estimated Cost on the Inventory Part - then stop there. The cost is setup for when the future periodic costing is done - in a batch - we do not update individual costs for existing parts throughout the year as a general rule. There are some exceptions, but the process difference makes your problem not a problem.
To answer your question though, no, there is no IFS function to do this automatically. A custom API could be written to do it, but nothing that would exist in your install.
Hi
I recommend you to use Weighted Arrearage as the Inventory Valuation Method for your part
That isn’t a suggested change that can just be made to address an automation related question. The costing method chosen is dependent on the accounting principles for the company setup in question. I would definitely NOT recommend making this change without first checking with accounting and understanding the significant differences in operation for Weighted Average. It changes many other things from a financial perspective besides just the cost calculation.
I’m surprised if you are using standard costing that the cost is changed when the supplier price is updated. Most accounting practices would have you update standard cost only on a periodic (annual) or planned basis.
Are you actually changing inventory value every time you do this update?
We would run afoul of accounting if we followed this sequence. Our process is to update the SfPP Price, then update the Estimated Cost on the Inventory Part - then stop there. The cost is setup for when the future periodic costing is done - in a batch - we do not update individual costs for existing parts throughout the year as a general rule. There are some exceptions, but the process difference makes your problem not a problem.
To answer your question though, no, there is no IFS function to do this automatically. A custom API could be written to do it, but nothing that would exist in your install.
we generally change the price in supplier for purchase part window due to the fact that supplier may increase the cost of materials and we rerun the part costing only for those items which in turn generates the purchase price variance.
Hmmm, for the US GAAP (Generally Agreed Accounting Principles), this practice would not be acceptable. The purchase price variance is intended to capture those differences to standard cost. If you are always correcting cost to remove the variance, then that is not my understanding of standard cost.
It is possible to automate the costing sequence (we have done for other purposes), but it is a custom program written by a developer. It is used mainly for new part setup, not adjustments to cost in between annual updates.
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