Question

Incorrect Planned Costs from Work Order Connection

  • 23 November 2022
  • 9 replies
  • 244 views
E
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Hello,

We are running into an issue with planned/committed costs for material showing an incorrect value when a specific inventory part is added to a project-connected work order. The planned cost is calculated and showing correctly on the work order, but the project connection and activity cost is significantly higher. We have been unable to figure out how this value is being calculated differently compared to the work order. For reference, we are running IFS Apps 10 Update 13.

The part in question is a manufactured part. Below is a screenshot of the inventory part and the cost tab. It shows the current unit cost of one of these parts as $37,745.88. 

 

 

When I add this part to a work order on the materials tab, it pulls in the correct Planned Cost for that part. It also shows the correct planned cost on the work order Budget tab.

However when we look at the project activity that this work order is connected to, for some reason it is showing a planned/committed cost of $149,060,400.52. This is the only work order connected to this activity and the only part on that work order. If I delete the part from the work order, the materials cost on the activity would show $0, so we know something with this specific part is driving a huge erroneous planned cost. The project connections screen also shows the planned cost is coming from the connected work order and not from something else.

Does anyone know what is causing the project activity planned cost to be significantly different from the actual inventory part and work order planned cost? What is driving the activity planned cost to calculate this?

Thanks,

Evan Edwards

9 replies

wrprabash
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Hello,

We are running into an issue with planned/committed costs for material showing an incorrect value when a specific inventory part is added to a project-connected work order. The planned cost is calculated and showing correctly on the work order, but the project connection and activity cost is significantly higher. We have been unable to figure out how this value is being calculated differently compared to the work order. For reference, we are running IFS Apps 10 Update 13.

The part in question is a manufactured part. Below is a screenshot of the inventory part and the cost tab. It shows the current unit cost of one of these parts as $37,745.88. 

 

 

When I add this part to a work order on the materials tab, it pulls in the correct Planned Cost for that part. It also shows the correct planned cost on the work order Budget tab.

However when we look at the project activity that this work order is connected to, for some reason it is showing a planned/committed cost of $149,060,400.52. This is the only work order connected to this activity and the only part on that work order. If I delete the part from the work order, the materials cost on the activity would show $0, so we know something with this specific part is driving a huge erroneous planned cost. The project connections screen also shows the planned cost is coming from the connected work order and not from something else.

Does anyone know what is causing the project activity planned cost to be significantly different from the actual inventory part and work order planned cost? What is driving the activity planned cost to calculate this?

Thanks,

Evan Edwards

Hi Evan,

Check if the cost that you have in project is from the supplier price Offred to this part, you can check this in client 'supplier for purchase part’, might clear your doubts.

Regards,

Roshan

E
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Userlevel 2
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Hi Evan,

Check if the cost that you have in project is from the supplier price Offred to this part, you can check this in client 'supplier for purchase part’, might clear your doubts.

Regards,

Roshan

 

Hi Roshan,

Below is a screenshot of the supplier for purchase part for this inventory part. The base price looks like it’s set to $1, so this doesn't appear to be driving the $150 million planned price.

 

A
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Userlevel 7

That looks very strange. If you look at the part cost screen, do you have any odd costs there? Any buckets of burden or some sort of overheads defined?

E
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Userlevel 2
Badge +6

That looks very strange. If you look at the part cost screen, do you have any odd costs there? Any buckets of burden or some sort of overheads defined?

Hi anmise,

It looks like this is going down the right path. When I look at the part cost for this item, it shows the total cost of $149,060,400.52. We do have some overhead, but it’s being calculated off of an erroneous estimated material cost of $129 million. Any recommendations on how to try fix this incorrect cost calculation?

 

A
Rank
Userlevel 7

That looks very strange. If you look at the part cost screen, do you have any odd costs there? Any buckets of burden or some sort of overheads defined?

Hi anmise,

It looks like this is going down the right path. When I look at the part cost for this item, it shows the total cost of $149,060,400.52. We do have some overhead, but it’s being calculated off of an erroneous estimated material cost of $129 million. Any recommendations on how to try fix this incorrect cost calculation?

 

Excellent, we’re on the right track. I’m no expert on costing and I don’t dare give you advice. @Björn Hultgren or @ANNYSE probably can though.

E
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Userlevel 2
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I wanted to follow up on this as I’m still looking for assistance on correcting this part cost issue we are experiencing.

N
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We’re seeing this same issue in Cloud 22R1 where the work order materials show the correct cost, but there is a massively inflated planned cost on the project connection. We’re using the FIFO costing method on the inventory parts, don’t have a cost on the supplier for purchase part, and haven’t run a cost calculation that is explaining it.

The planned cost showing on the project connection does equal to the sales price of the sales parts for those inventory parts, though.

E
Rank
Userlevel 2
Badge +6

We’re seeing this same issue in Cloud 22R1 where the work order materials show the correct cost, but there is a massively inflated planned cost on the project connection. We’re using the FIFO costing method on the inventory parts, don’t have a cost on the supplier for purchase part, and haven’t run a cost calculation that is explaining it.

The planned cost showing on the project connection does equal to the sales price of the sales parts for those inventory parts, though.

Do any of these parts with the inflated planned cost happen to be manufactured parts?

N
Rank
Badge +1

They are all purchased, and we found the source of some of the grossly inflated costs to be the supplier for purchase part’s primary supplier set to a price of 1000000000000.

 

The customer was using this value as a flag that they didn’t have a correct price, and they were updating the price on the work order’s purchase requisition directly. So even though the work order planned cost was correct, the project was calculating a planned cost for that work order from the supplier for purchase part cost. After updating the supplier for purchase part price and refreshing the project connections, the project was showing the correct planned cost, however we think this is still an issue that it’s not using the actual planned cost from the work order.

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