Doug Jefferson
23rd May 2003, 19:10
We continue to have problems linking a misc. A/P credit from a supplier for price differences on an inventory item, which overstates our standard cost of the item.
We currently have our standard cost mapped in the following priorities.
Average, Latest, Current, Simulated.
An example of this problem is as follows:
Standard cost of item = 100.00
Purchase order = 100.00
Suppliers invoice = 125.00 When the agreed upon price is 100.00.
Due to the terms of payment we are unable to change the suppliers invoice back to 100.00 and they do a internal credit on their books to correct the error. We are forced to input the invoice at 125.00 which creates a PPV.
When the suppliers credit memo is received its for 25.00 which we then input as a misc A/P credit charged off to the PPV account to offset the amount posted to the account from the original invoice.
As standard cost roll ups occur the overstated cost is incorporated into the cost of the item. The time period that this overstated cost varies depending on the number of receipts, price changes, and time.
If we do GTM as a workaround, we will have to keep adjusting the standard cost of the item each time until the standard is corrected over time with actual receipts, price changes, etc.
We also attempted to do a negative quantity of 1 for the full amount of the credit from the supplier which would like the credit amount to the item, and then doing a stock adjustment to add 1 ea back into stock for the one we adjusted out of inventory on the purchase order.
This workaround almost worked, however, we have a solution loaded into our system from our manufacturing department (they do not recall the solution #) that prevents our return to vendor (supplier) purchase orders with negative quantities from being included into the standard cost calculation.
In addition we would like to have the ability to see how standard cost is calculated, the detail of each cumulative costing history. We have found the formula that Baan uses to do this but been unable to discover where the data is stored so that we can retrieve it and analyze it.
We are also aware of the Equate Balance sessions functionality of clearing history records.
Any suggestions, input or workarounds would be greatly appreciated.
We currently have our standard cost mapped in the following priorities.
Average, Latest, Current, Simulated.
An example of this problem is as follows:
Standard cost of item = 100.00
Purchase order = 100.00
Suppliers invoice = 125.00 When the agreed upon price is 100.00.
Due to the terms of payment we are unable to change the suppliers invoice back to 100.00 and they do a internal credit on their books to correct the error. We are forced to input the invoice at 125.00 which creates a PPV.
When the suppliers credit memo is received its for 25.00 which we then input as a misc A/P credit charged off to the PPV account to offset the amount posted to the account from the original invoice.
As standard cost roll ups occur the overstated cost is incorporated into the cost of the item. The time period that this overstated cost varies depending on the number of receipts, price changes, and time.
If we do GTM as a workaround, we will have to keep adjusting the standard cost of the item each time until the standard is corrected over time with actual receipts, price changes, etc.
We also attempted to do a negative quantity of 1 for the full amount of the credit from the supplier which would like the credit amount to the item, and then doing a stock adjustment to add 1 ea back into stock for the one we adjusted out of inventory on the purchase order.
This workaround almost worked, however, we have a solution loaded into our system from our manufacturing department (they do not recall the solution #) that prevents our return to vendor (supplier) purchase orders with negative quantities from being included into the standard cost calculation.
In addition we would like to have the ability to see how standard cost is calculated, the detail of each cumulative costing history. We have found the formula that Baan uses to do this but been unable to discover where the data is stored so that we can retrieve it and analyze it.
We are also aware of the Equate Balance sessions functionality of clearing history records.
Any suggestions, input or workarounds would be greatly appreciated.