Hello -
We are on IFS10, update 23. We are going to change our inventory valuation method from weighted average to standard costing. I was hoping someone had a checklist of what needs to be done in IFS to make this change. Any help would be appreciated.
Thanks
+1We are on IFS Cloud and are contemplating a switch away from weighted average costing and would appreciate a checklist if someone has one.
There is a great deal. Not sure I can think if everything off the top of my head.
1.) One, to change the settings no inventory can exist in the system or open shop orders. That will need to be addressed first if it does.
2.) Obviously, the inventory part record will then need to be changed to standard cost.
3.) Need to verify that all raw materials contain a cost per (unit cost) in the inventory part record and this reflects the desired standard cost to be used.
4.) Routings and structures need to be reviewed both times and related costing data. Labor class and work center costs under average may be fine. But for standard costing he values here may or may not be valid.
5.) Posting rules for PPV M19 and M20 may need to be setup and linked to the appropriate GL account. In addition assuming shop orders are being used, posting rules M48,M49, M120,M121,M123, and M124 need to be checked.
6.) Once all this data is verified, then one of the “all part cost calculations” will need to be performed. This depends on the scope of what is happening here.
7.) The “Copy Costs to Cost Set One” process will need to be run. This will push the standard cost derived in step 6 to the parts themselves.
In general, the cost buckets, cost sets, and posting groups should be reviewed. And keep in mind that all of these steps will have a huge impact to the inventory value if done globally and related reporting.
I doubt I have everything here.
Thanks,
Rich
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