+19Hi All,
For a particular scenario, we want to COUNT-IN a part with a new Unit Cost. This part has been in the inventory before, so the previous Unit Cost is derived.
Yes. we have given the option of ‘Define cost’ in the line level, but this can be enabled only when the inventory valuation is FIFO, LIFO or Weighted Average.
Our part has, Standard Cost > Cost per serial in Cost control.
On what reasons this functionality is not enabled for Standard Cost?
Thanks.
Best answer by Thushitha Chandrasiri
Hi Vimukthi,
In Standard Costing in IFS, if we define the unit cost for a standard cost part for the first time, it will be used in each and every inventory transaction. When we use standard costing, unit cost of the inventory part can be changed, only by performing a cost calculation in a cost set other than cost set 01, and performing copy costs to cost set 01 (so, by changing the total cost in the cost set 01).
When doing a count in or a manual receiving of an inventory part, a cost change in the cost set 01 is not performed. It is changing directly the unit cost of the part. Since standard costing does not allows direct changing of the value of the unit cost of an inventory part, we cannot define the cost structure at every time we do a count in or a manual receiving, if the part is a standard cost part.
But, regardless of that Define Cost check box, if the the part is receiving into inventory for the first time (or if the unit cost of the inventory part is not defined in the Costs tab of the Inventory part, or cost calculation/copying cost is not performed, Define Cost Structure dialog box is always popped up.
Hope your inventory part has a unit cost in the Costs tab in the Inventory Part record ? and that’s why it does not gives that dialog box when counting in.
Thanks.
+21Hi Vimukthi,
In Standard Costing in IFS, if we define the unit cost for a standard cost part for the first time, it will be used in each and every inventory transaction. When we use standard costing, unit cost of the inventory part can be changed, only by performing a cost calculation in a cost set other than cost set 01, and performing copy costs to cost set 01 (so, by changing the total cost in the cost set 01).
When doing a count in or a manual receiving of an inventory part, a cost change in the cost set 01 is not performed. It is changing directly the unit cost of the part. Since standard costing does not allows direct changing of the value of the unit cost of an inventory part, we cannot define the cost structure at every time we do a count in or a manual receiving, if the part is a standard cost part.
But, regardless of that Define Cost check box, if the the part is receiving into inventory for the first time (or if the unit cost of the inventory part is not defined in the Costs tab of the Inventory part, or cost calculation/copying cost is not performed, Define Cost Structure dialog box is always popped up.
Hope your inventory part has a unit cost in the Costs tab in the Inventory Part record ? and that’s why it does not gives that dialog box when counting in.
Thanks.
+12Standard Cost changes should comes through Part Cost Calculation Cost rollups. If you allowed to change the standard cost here it will reevaluate your whole Inventory Part In Stock which is wrong.
+19Thank you Aan and Thushitha.
So based on your answers I understand,
“When we use standard costing, unit cost of the inventory part can be changed, only by performing a cost calculation in a cost set other than cost set 01, and performing copy costs to cost set 01 (so, by changing the total cost in the cost set 01).
When doing a count in or a manual receiving of an inventory part, a cost change in the cost set 01 is not performed. It is changing directly the unit cost of the part.”
and
“If you allowed to change the standard cost here it will reevaluate your whole Inventory Part In Stock which is wrong”
+21Yes, Vimukthi, you are correct. And additionally;
When a new inventory part is created with standard costing, and if its cost is not defined (by updating the cost tab in inventory part record, or by performing a cost calculation/roll-up for part), the Define Cost Structure dialog box is popped up when you do a count in or manual receive, regardless of the value in Define Cost check box.
Thanks,
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