Question

Latest Purchase Cost to Standard (Cost Set 1) Process

  • 29 June 2022
  • 3 replies
  • 375 views
J
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Hi all,

We went live in January and when we did so estimated material cost was migrated in from our old system and Cost Set Two was calculated using estimated material cost and then copied into Cost Set 1 to set the standard. We now want to base our standard on the latest purchase price.

I think I may be misunderstanding the IFS flow for latest purchase price to standard. I am working in Aurena. I thought it was as follows:

  1. Calculate Purchase Costs (I am basing on Latest Purchase Price), this is under Warehouse Management-Financial Control
  2. Update Estimated Material Costs, this is under Warehouse Management-Financial Control
  3. All Parts Cost Calculation (selecting Cost set 2 and selecting Copy Estimated Material Cost), found under Engineering Costing
  4. Copy Cost Set to Cost Set 1 (Selecting Cost Set 2), found under Engineering Costing

 

If anyone could map out the steps if this is incorrect that would be wonderful.

 

Thanks,

 

Jeaneane

 

3 replies

S
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Userlevel 7
Badge +28

Have a read through this post

 

It has more detail than the shorter answer I gave on your last question on this topic

 

J
Rank
Badge +2

HI,

Thank you but this doesn’t answer the question. In your first post (below) this gentleman was asking how to set a standard due to exchange rates so was provided guidance on how to extract update and import. We will not be doing this. In the second response below (which related to another question I asked) you mention the first step is to update material costs. I want to do that but I want to do so by using the latest purchase price of all components purchased. Therefore there is another step which I believe is what I laid out. I am asking if my steps are correct as I have already calculated latest purchase price, the background jobs are complete. I thought next steps would be to update estimated material.

 

The general steps are as follows:

  1. Go to the Part Costs view and download the current standard cost for all items in the Site or Sites affected (need Contract (site), part no, cost at a minimum)
  2. Use excel to update the cost by the exchange rate difference or percentage they want to use as a correction
  3. Prepare a migration job as the screenshot below with just the three columns listed
  4. Upload the new cost to the Inventory Part Estimated Cost using the migration job
  5. Recalculate the entire Site using All Parts Cost Calculation or select the affected parts from the Part Costs overview and calculate all parts in Cost Set 2 or whichever set they normally do their calculations.  Calculate all levels if there are any manufactured parts
  6. Verify the costs are as expected in Cost Set 2
  7. Copy the costs to Cost Set 1 for all parts, at which point the total inventory cost will be revalued to the new total

 

You will want to prepare costs in this manner:

  • Enter the estimated material cost (our buyers typically do this after deciding the price from the primary supplier)
  • Calculate the cost in cost set 2 (done by the cost accountant or sometimes the material planner depending on the site and responsibility)
  • Copy the cost to cost set 1 (this sets the standard cost AND revalues inventory if there is QOH, this should be controlled by finance or a designee that understands when according to accounting requirements WHEN it is correct to do this)
S
Rank
Userlevel 7
Badge +28

@Jeaneane L. 

Maybe I should have questioned what version you went live on (I wish we could make that a required entry on posts, it would make things clearer).  

All of my references and instructions were based on V9, and they are the steps required whether doing exchange rate revaluation or year end costing or any other type of mass update in that version, so would be the right answer in that context.

The functions that you mention are not anything I have experience with.  I went and took a quick look at IFS Cloud, and I see that there seems to be a method to bypass the migration job download and upload to set the Estimated Cost to the new values.  If the Estimated Cost is now reflecting your Last Purchase as expected, then I think your sequence seems accurate as you’ve really just replaced the migration steps with the new out of the box function.

Problem is I haven’t used this function yet so I can’t comment if there are idiosyncracies to it.

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