Distribution, Manufacturing, and Internet Modules

[jsnm1]

Hello all,

Does anyone out there have documentation as to how average costs are processed for manufactured items.  I'm specifically interested in understanding the posting to the manufacturing variance account.  It's a bit disconcerting since average cost is generally used as a means of eliminating variance analysis.

We're using MAS90 4.20.0.0

Any help on this topic would be greatly appreciated.

Jim

[bpoole]

The help files outline the calculations on all the costing methods.

Look in the help file index under inventpry, costing methods.

[JimPetrie]

Jim,

What costing method(s) are you using for your items?  If you use Standard Cost, you'll see postings to mfg. variance because a standard cost item can only go in to inventory at the standard cost, so any difference between the standard cost and the actual cost to produce posts as a mfg. variance.

[jsnm1]

Brian,

Thanks, that is exactly what I needed.

Regards,

Jim

[jsnm1]

Jim,

We're using average cost for our items.

Unfortunately this choice for inventory valuation can still produce small purchase and large manufacturing variances.  This contradicts my experience with average costing from prior experience.  It's ok, but I need to take the time to understand and reduce the occurrences rather than simply re-classing them.

Thanks for your reply,

Jim