Process Standard Cost Worksheet for Items with FIFO Costing Method
Overview
The Standard Cost Worksheet is used to adjust the Standard Cost of an item by modifying the existing cost for Purchase items or rolling up formula costs for Work Order items. This process should be executed after completing the Cost Adjust Routine from the Administration menu.
FIFO Costing Method
The Standard Cost Rollup process is optional when using the FIFO Costing Method. However, it can be useful if you want to:
Understand the cost structure of Work Order items.
Run the Multi-Level Formula report to display accurate costs.
For Purchase Items
Create a New Standard Cost Worksheet
Open the App Launcher and search for Std. Cost Wkst.
Click New to create a new Standard Cost Worksheet.
Select Purchase for the Replenishment System.
Save the worksheet.
Note: Process the Standard Cost Worksheet for Purchase items before processing it for Work Order items.
Rollup of the Standard Costs for Purchase Items
The New Standard Cost will be calculated using one of the following:
Average Base Cost (from existing inventory).
Last Invoiced Base Cost (from posted purchase invoices) if the Avg. Base Cost is 0.
Current Standard Cost if both Avg. Base Cost and Last Invoiced Base Cost are 0.
You can apply an Adjustment % to the cost.
New Standard Costs can be updated manually by selecting the Rollup button.
Revalue the Standard Costs
This step can be skipped for FIFO Purchase items.
Post the Standard Cost Worksheet
Posting the worksheet will:
Update the Standard Cost for items.
Not update the value of the existing inventory.
For Work Order Items
Create a New Standard Cost Worksheet
Select Work Order for the Replenishment System.
Save the worksheet.
Rollup of the Standard Costs
This function calculates the New Material Base Costs, New Capacity Base Costs, and New Standard Base Costs based on the following rules:
Lower-level items (with the highest number in the Low-Level field) are calculated first.
The Rollup Date is used to find Active Formula Versions to determine the Item Formula to roll up.
The Default Routing Version (or blank version if no default exists) is used to determine the Item Routing to roll up.
Material costs are calculated for lower-level items first, followed by routing costs. The total Standard Cost is rolled up as the Material Cost for higher-level parent items.
If the Formula Management for an item is based on percentage, the component's Qty. Per value is converted to the same Base Unit of Measure as the parent item.
Active Ingredient % is ignored.
The Specific Cost for an item routing is used.
Revalue the Standard Costs
This step can be skipped for FIFO Work Order items..
Post the Standard Cost Worksheet
Posting the worksheet will:
Update the Standard Cost for items.
Not updating the value of the existing inventory.
