Community,
We have bunch of products that are returned from customer. they are being repaired/replaced/scrapped and stocked later on.
our question is, what is the best practice to have them costed differently under the same part no? basically they have the same part no as the brand new product, currently in our system, the standard cost cannot be split.
thinking of using condition code? will that work? Thank you.
Best answer by John Keith
Hi Ron,
The steps you would need to take would be to temporarily issue the existing quantity from stock so that it’s at zero.
This allows you to turn on Condition Codes on the Master Part (Part Catalog) record and change the costing method on the inventory part. It will also need to be either serial or lot batch tracked (which makes sense as you need some way of distinguishing the parts of different condition from each other when picking/scraping etc. using “order based” means it will automatically assign lot batch numbers from either the shop order or purchase order dependant on how it’s sourced if it’s not usual for the company to define them.)
you can then receive the inventory parts back on at different costs per condition.
Finance may then need to deal with any cost balance between the issue and receipts used to reclassify.
i.e.
I had Qty 200 that I issued at $10 each
I then re-received them at
100 @ $10
100@$5 for used condition,
I’ve got $500 left on the P&L from the M2 and M5 postings from the issue and receipts respectively that needs to go to stock write off account if M2 and M5 aren’t both pointing to one.
So there is a bit of process to follow, but not too complicated.
info on Condition Codes is found here:
https://docs.ifs.com/ifsclouddocs/23r2/MaintainInventory/AboutConditionCodes.htm
Hi Ron,
Yes Cost per condition code is ideal, you’d use the condition code to mark it as “New”, “Refurbished”, “Restocked”, “Cosmetic Damage” as examples to have individual costs for each type of the same part.
Works with Standard Cost or WA in IFS
I think the following question would be, would it be easy to turn Condition Code on for those parts that come with inventory transactions already. basically, if we would like to use condition code, then the part no should be a used part no that had inventory transactions.
Thank you.
Hi Ron,
The steps you would need to take would be to temporarily issue the existing quantity from stock so that it’s at zero.
This allows you to turn on Condition Codes on the Master Part (Part Catalog) record and change the costing method on the inventory part. It will also need to be either serial or lot batch tracked (which makes sense as you need some way of distinguishing the parts of different condition from each other when picking/scraping etc. using “order based” means it will automatically assign lot batch numbers from either the shop order or purchase order dependant on how it’s sourced if it’s not usual for the company to define them.)
you can then receive the inventory parts back on at different costs per condition.
Finance may then need to deal with any cost balance between the issue and receipts used to reclassify.
i.e.
I had Qty 200 that I issued at $10 each
I then re-received them at
100 @ $10
100@$5 for used condition,
I’ve got $500 left on the P&L from the M2 and M5 postings from the issue and receipts respectively that needs to go to stock write off account if M2 and M5 aren’t both pointing to one.
So there is a bit of process to follow, but not too complicated.
info on Condition Codes is found here:
https://docs.ifs.com/ifsclouddocs/23r2/MaintainInventory/AboutConditionCodes.htm
Enter your E-mail address. We'll send you an e-mail with instructions to reset your password.
