We implemented a lot actual costing system to 1 of our clients. But the pricing for goods issue cant march what we expected.
I found that even lot actual pricing implemented, goods issue will still be recorded in Fixed Tranfer Price:
For instance, a lot was purchased at 100USD while FTP is 80 USD.
1. The Purchasing receipt will book:
DR goods (inventory) 100

Anthony,

From your other posts, I assumed you are on Baan IV. Is that correct?

You have LTC implemented and Lot pricing specified for the item in question. Std Cost (FTP) is $80, Purchase Price is $100. At receipt, Baan will recognize a $100 DR to inventory as the cost of that lot, as expected.

When you issue the lot to production, Baan issues to WIP (/SFC Order) at Std Cost (FTP) of $80. The difference of $20 is recorded as a Lot result [Transaction Origin = Production(SFC) ; Financial Transaction = Lot result].

Scott

Scott,

Thanks for your reply. We do use BAAN IV C4.
I haven't finished this post when i post it, so please kindly find another post i have copied here.
The issue we have is the client is a trading company and want to use BAAN to record lot actual price.
That is for both purchase and sales, we will expect BAAN can recognize lot actual costing. We dont'e have TI module implemented in this case.

Thanks,
Anthony


We implemented a lot actual costing system to 1 of our clients. But the pricing for goods issue cant march what we expected.
I found that even lot actual pricing implemented, goods issue will still be recorded in Fixed Tranfer Price:

For instance, a lot was purchased at 100USD while FTP is 80 USD.
The Purchasing receipt will book:
1. DR goods (inventory), 100
CR invoiced to be received, 100

But when goods issed to customer at price 120, sales issue will only book:
2. DR goods to be delivered, 80
CR goods, 80
and book sales lot result as
3. DR goods, -20
CR to lot result, -20

from 2,3. altoght the total goods will be CR 100, but the total for sales issue will be -60 (???)

Since the goods to be delivered can't be specified by customer group, so we have to use invoice detail for the record of COGS by customer group.

BUT

We can't find lot actual pricing in "Maintain invoice detail account" (tdsls6102m000)

would someone here please help!!

Thanks a lot.

Anthony

Anthony,

The bad news is that you can’t find lot actual pricing in "Maintain Invoice Detail Accounts" (tdsls6102m000) because it isn’t there. (Invoice Details won’t let you direct a Lot Result to a specific account by Financial Customer Group because the [logistic] inventory portion of the procedure is complete at delivery.)

The good news is that I see a net $100 flowing to the bottom line as a result of the sales issue and COGS transactions. I think your $60 net total is an example of why many accountants dislike introducing negative CRs and negative DRs

Sales issue generates entries of: $100CR Goods (inventory); $80DR Goods to Be Delivered; Lot result -$20CR (i.e. same as +$20DR) to a P/L (expense/cost) account.

When you actually invoice the sale (Process Delivered Sales Orders), you have $80CR to Goods to Be Delivered and $80DR to the COGS account(s) specified in invoice details.

If the account specified for your Sales/Lot Result is reported in the COGS area of your statements, your COGS is correct in total ($80DR - $20CR =$100DR).

The problem is that the lot result is recognized at delivery whereas COGS with invoice details is recognized at invoicing. So there is a timing difference that requires more disciplined procedures if you want to treat the Lot Result as part of COGS, matched to period sales revenues.

I don’t know your client’s requirements for segregating Sales, COGS and Lot Results by Customer Financial Group in the ledger, but have you considered using dimensions? CFG is an available element for the Sales/Issue transaction.

Scott

Ye, you are right. This chould be solution to book the COGS in sales/lot result. But it's pity can't march with sales period, and can't be recognized by FCG.

Since they have already used 3 dimensions, so i would not propose the solution for dimension of FCG.

You seem to be so familiar with BAAN finance, guess you are also a finance consultant?

Regards,
Anthony

Anthony,
Yes, primarily finance. But I like to think I also work outside the box.
Scott