Distribution, Manufacturing, and Internet Modules

[bridgette]

Using M90 4.4....

Our inventory valuation method is setup as Average Cost.
All of our items have a Standard Cost, filled in, maintained reguarly.

I've gone in to each of the Vendors / Items / Pricing / and switched them to "Standard Cost" and then, on the same screen selected each of the product lines, one by one, and changed them all to "Standard Cost"

Before I did that, on a PO Line Entry it would pull up the Average Cost.

Now, on a PO Line Entry it sets the cost to "0.00"

How can I get the Purchase Order to display the Standard Cost??

Thanks for any help....

[DFeller]

If you pick "standard cost" on this screen, it pulls the cost you enter on this screen.

To pull the standard cost from item, pick "discount %" and it would be left at 0.00.  This translates to "0.00% discount off of standard cost in inventory".

Dawn

[SPyle]

I hope you discussed this with your accountant before you did this.  There are very strict rules with the IRS regarding changing inventory costing methods.

[DFeller]

This person is not talking about changing their accounting methods, just how to pull a particular cost on the P/O.

Dawn

[SPyle]

  "Our inventory valuation method is setup as Average Cost."

Perhaps, perhaps not.  I'm just trying to point out a potential problem.

[DFeller]

Yes, I read that part.  If your inventory valuation method is set to Average cost, then by default the system wants to pull average cost into the PO by default (unless you have a vendor last cost, etc. based on the hierarchy).  Some people want to use the value in the standard cost field regardless, and that's what I was talking about.

Dawn

[take2intheam]

I would love to be shown otherwise on this topic, but for the life of me, I cannot get the cost of an item which has been set up with the valuation of "Average Cost", to be populated on a Purchase Order Line Item with anything except the Average Cost.

Like brigette, I want to set all my items up with a valuation of "average cost", yet when an item is entered on a P/O, the standard cost will appear. The advantage to this is at least two-fold:

(1) You can change the standard cost easily (as price changes come in) by simply entering them through Item Maintenance (no need to use the Standard Cost Change program, which only runs if everyone is off the system).

(2) If the valuation is set to Standard Cost, whenever you change the standard cost amount for an item (using the Standard Cost Change program), it creates a Journal Entry debiting inventory and crediting cost for the amount of the cost change times the number of units on hand (presuming the cost increased). Obviously, I don't want these entries affecting my P/(L). because

I have tried every combination of Vendor Price Levels, Product Lines, etc. to get a P/O to put the standard cost for each line item,  but to no avail. And this actually agrees with what I've read under the "Defining Hierarchy of Costs" section of the users manual. According to that, if an item is set up as "Average Cost" valuation, then it is going to pull the average cost for the Warehouse (if it exists), then the part itself (if it exists) before moving on to Standard and or Last Unit costs.

Am I missing something here? Please tell me I am! Thanks.

[DFeller]

You are.  Do this (You can do this in a test company first if you feel more comfortable):

Version 4.40 or higher:

Go into vendor price level maintenance.

Enter the vendor ID for the vendor.

Select pricing type "Item code"; enter the item code.

Leave discount % to zero.

Version 4.30 or lower:

Go into vendor price level maintenance

Enter the vendor ID for the vendor.

Skip past the product line and enter the item. (OR, to make this happen on ALL items for a vendor, skip the item number field.)

Choose "discount percentage" or "cost discount amount" for the pricing method. (Do not pick standard cost.)

Leave the amount at zero.

Dawn