Basic Instructions for rolling all Standard Costs
Summary: This document explains the basic steps to roll standard costs on all MFG. items in the system. A methodical approach is key to making sure that all costs are correctly rolled throughout all items in the system.
If you are attempting to update all costs including the following please do so in the order as described.
- Update Labor Rates – located in the System Setup Tab, Lists, Employee Level.
Update Overhead Rates – there are two methods for doing this.
- If you are using work center level rates update each work center for the correct rate
If you are using Master Center Type Rates update the Center Type Rates and make sure to apply the change across all of the related machines
- Update if required the Standard Calc. Quantity remember this is used to spread the costs of a setup across X quantity of produced parts. The default in the system is 1000 pieces however this can be overridden at the item level on the Standard Costing Tab
Update Raw Materials Cost – various methods can be used (please see Raw Material Cost update for more information)
- Update Future Costs with average costs (uses the current average cost calculated by the system)
- Update Future Costs with Last Purchase Order Price
Before proceeding the user can run reports to find any major variance in the cost updates on the purchased items.
- Update any Outsource Costs – this is required due to the nature of how outsource works, the user will have to update each item with an outsource cost.
Rolling Costs on all MFG. Items:
- In the inventory module proceed to the lowest level item that you can find
- Go to the Standard Costing Tab and select Calculate Cost
- At the prompt to recalculate now click on the no button
- In the Cost Calculation Module do the following
- When this is completed if there are requirements too the system will book entries to the Asset accounts for inventory offset by entries to the expense accounts
- Step 1 – select the Calculate All Button and then select the Calculate Future Costs button at the prompt select yes
- Step 2 – before posting you can run various reports to see the overall effect that the cost roll will have on the current value of inventory. You can make any corrections now as nothing has been posted yet
Step 3 Select the Roll all to Current Button
Make sure that all of the following PIT transactions are posted before proceeding
- Receiving Transactions
- Shipments Pending Invoice
- Manual Adjustments
If using Assy 1,2,3 Mfg. Types
- Process WIP
Finish Process WIP
- Physical Inventory