Process Standard Cost Worksheet for Items with FIFO Costing Method
Overview
Use the Standard Cost Worksheet to adjust the Standard Cost of an item by adjusting the existing cost for Purchase items or by rolling up formula costs for Work Order items.
This process should be run after you run the Item Calculate Low Level routine from the Administration menu.
FIFO Costing Method
The Standard Cost Rollup process is optional if you use the FIFO Costing Method. It should be run if you want to understand the cost structure of Work Order items or if you want to run the Multi-Level Formula report to display the correct costs.
Purchase Items
Create a New Standard Cost Worksheet
Create a new Std. Cost Wkst. Open the App Launcher. Search for Std. Cost Wkst.
![](../__attachments/2614951937/image-20221019-133724.png?inst-v=7859a023-5511-40be-b967-a1e2fed73946)
You must process the Standard Cost Worksheet for Purchase items first, then process the Standards Cost Worksheet for Work Order items.
Select New to create a new Standard Cost Worksheet.
Select Purchase for the Replenishment System.
Save the Worksheet.
![](../__attachments/2614951937/image-20221019-133953.png?inst-v=7859a023-5511-40be-b967-a1e2fed73946)
Rollup of the Standard Costs for Purchase Item
The New Standard Cost will use the following costs:
The Avg. Base Cost (from existing inventory).
Or the Last Invoiced Base Cost (from posted purchase invoices) if Avg. Base Cost is 0.
Or the Current Standard Cost if both Avg. Base Cost and Last Invoiced Base Cost is 0.
Then add Adjustment %.
New Standard Cost can be updated manually by selecting the Rollup button.
![](../__attachments/2614951937/image-20221019-134108.png?inst-v=7859a023-5511-40be-b967-a1e2fed73946)
Revalue the Standard Costs
This step can be skipped for FIFO purchase items.
Post the Standard Cost Worksheet
This function will perform the following:
The Standard Cost for items is updated.
The value of the existing inventory will not be updated.
![](../__attachments/2614951937/image-20221019-134221.png?inst-v=7859a023-5511-40be-b967-a1e2fed73946)
Work Order Items
Create a New Standard Cost Worksheet
Select Work Order for the Replenishment System.
Save the Worksheet.
![](../__attachments/2614951937/image-20221019-134337.png?inst-v=7859a023-5511-40be-b967-a1e2fed73946)
Rollup of the Standard Costs
This function will calculate the New Material Base Costs, New Capacity Base Costs, and New Standard Base Costs based on the following:
The lowest-level items (those with the highest number in the Low-Level field) are calculated first.
GoldFinch will use the Rollup Date to look for Active Formula Versions to determine the Item Formula to Rollup.
GoldFinch will use the Default Routing Version (or blank version if a default doesn't exist) to determine the Item Routing to Rollup.
Each lower-level item will calculate the Material Cost first, then Routing Cost. The total Standard Cost is rolled up as the Material Cost for higher-level parent items.
If the Formula Management for the Item Formula is Percentage, the Component's Qty. Per value is converted to have the same Base Unit of Measure as the Parent Item.
The Active Ingredient % is ignored
The Specific Cost for an Item Routing is used.
![](../__attachments/2614951937/image-20221019-134558.png?inst-v=7859a023-5511-40be-b967-a1e2fed73946)
Revalue the Standard Costs
This step can be skipped for FIFO work order items.
Post the Standard Cost Worksheet
This function will perform the following:
The Standard Cost for items is updated.
The value for the existing inventory is not updated.