Cost Updates

The Cost Updates transaction benefits users in the following ways:

  • Companies running in standard costing will often times need to update the accounting standard costs on items. This is accomplished on individual items via the “Update Acct. Std” button on the Item Master header. When used, this button will move the costs in the current costs fields on the left-hand side of the Costs tab to the right-hand side of the tab. The Cost Updates transaction allows customers to perform this task on multiple items simultaneously, which allows companies to update their costs after they have been reviewed on a periodic basis, perhaps monthly or quarterly. There is no GL impact when updating standard costs using this transaction.
  • Those customers that wish to re-value their inventory Lot costs may do so via the “Lot Costs” Update Type on the pre-filter. This will have a GL impact resulting in a debit to inventory and credit to COGS Variance GL account, if for example the Lot cost is increased.

Facility cost updates

Facility Part Cross References may be configured to store cost information specific to an item in the specified Facility. If the "Use Costs" flag is checked on the Costs tab of the cross reference, the system will use the standard cost specified on that tab to update Lot costs for items in that Facility when using the Lot Costs "Update Type" option. Cross References also contain an "Update Acct. Std." button, same as on the general Item Master record. If using the Fixed Standard Costs "Update Type" option and the "Use Costs" flag is checked, the system will perform the same function as the "Update Acct. Std." button.

If there are Ship and Hold Facilities setup, users may want to ensure that cost updates are not applied to these specific Facilities. In this case, companies may set a zero standard cost on the Facility Part Cross Reference and check the the "Use Costs" flag so that the zero standard cost will be used if the Facility is accidentally updated using the Cost Updates feature.

Additional notes

  • The Cost Updates transaction is designed to be used when updating costs for multiple parts or lots. Costs for individual items may be applied by modifying an item individually in the Item Master section of the system. To revalue a specific lot in inventory users may use the "value only" option in the Adjust Inventory On Hand transaction.
  • The Update Type of "Lot Costs" will update all lots, regardless of a negative quantity, as long as the lot does not have a date filled into fi_zeroed.
  • The Update Type of "Purchase Orders - Price Variance" also includes non-stock Parts.
  • The Update Type of "Sales Orders - COGS Delta" also includes non-stock Parts.
  • Separate security settings exist to control which Update Type users may select when running this transaction. They are:
    • "Inventory -- Update Inventory Costing"
    • “Inventory -- Update Fixed Standard Costs” - this setting also controls access to the “Update Acct. Std.” button on the Item Master record.
    • “Inventory -- Update Received Orders COGS Delta”
    • “Inventory -- Update Shipped Orders COGS Delta”

System Navigation

  • Inventory > Cost Updates

Cost Updates form

Field/Button

Description

Apply

If clicked, executes the transaction with the details specified.

Update Type

Pick list used to indicate the type of update to perform. Options are:

  • Fixed Standard Costs - Performs the same function as the "Update Acct. Std." button on the Item Master header based on the pre-filter selections. This will have no GL impact.
  • Lot Costs - Revalues all Lots in the inventory "On Hand" bucket to the "Acct. Std. Total" on the Item Master Costs tab based on the pre-filter selections. This will have a GL impact due to the change in the value of inventory.
    • Only Lots with a balance (fi_balance) greater than 0 and Lots with a cost (fi_cost) that does not equal the "Acct. Std. Total" (pr_fixstan) are updated.
    • Items in other inventory statuses, such as Quarantine, Staging, or Reserved will not be updated.
    • Companies using Actual or Average Cost for their inventory costing will never revalue lots. Companies using Standard Cost for their inventory costing will use this feature periodically. If companies do not wish to have this Update Type chosen accidentally, they may turn off the “Inventory -- update inventory costing” security setting. It cannot be stressed enough that this is not a reversible transaction.
  • Purchase Orders - Price Variance - The purpose of this option is to find the difference between the Lot cost and the current "Acct. Std. Total" cost for items such as milk that are priced after they are purchased.
    • Instead of entering GL postings, the system will create Purchase Orders to account for the differences.
    • The process begins once the original PO for the item(s) has been received. If Facility Part Cross References exist that are flagged with "Use Costs", the system will use the Facility-specific (p3_fixstan) cost when using this option.
  • Shipped Orders - COGS Delta - The purpose of this option is to update the cost of Lots and shipped Lots based on the actual price of items that may be priced after Sales Orders are shipped. The most common example is milk, whose price is generally set on the 1st of the following month.
    • If the Part cost went up (resulting in a negative Total Diff), the COGS account will be debited and the COGS Variance will be credited.
    • If the Part cost went down (resulting in a positive Total Diff), the COGS account should be credited and the COGS Variance should be debited.
    • COGS Delta calculation: ((Lot cost per unit) - (standard cost of the item shipped))*pricing factor)*quantity shipped)

Date Based On

Determines what date the system will use when updating costs. Options are:

  • Expiration Date (fi_expires)
  • Lot Date (fi_lotdate)
  • Transaction Date (fi_date)

Start/End Date

Determines the date range to use when updating costs based on the "Date Based On" selection.

Cost To Update

Pick list available when "Update Type" is set to "Fixed Standard Costs" that determines which costs to update. Options are:

  • All - All Item Masters and Facility Part Cross References will be updated.
  • Item Master Facilities Only - Only Facility Part Cross References will be updated.
  • Item Master Only - Only Item Masters will be updated.

Facility

Search field used to select the Facility to update costs for.

  • If costs for more than one Facility need to be updated, each Facility must be done separately.

User Lot

Allows a specific User Lot in the selected Facility to be updated.

Type

Pick list used to determine which inventory segment will be updated. Definitions of each segment are available in the "View" field description in the Inventory Reporting pre-filter section of the Inventory Reporting page.

Item Type

Pick list used to determine which Item Type of inventory will be updated. Definitions of each type are available in the "Item Type" field description in the General 1 tab section of the Item Master page.

QC Status

Pick list used to determine what inventory will be updated based on a Lot's QC Status. Definitions of each status are available in the "QC Status" field description in the Inventory Reporting pre-filter section of the Inventory Reporting page.

Revenue Account

Search field used to select a Revenue Account so that only Lots for items with this account defined in the "Revenue" field of the Item Master Accounts tab will be updated. 

Category

Search field used to select a Category so that only Lots for items with this Category defined on their Item Master General 1 tab will be updated. 

Sub-Category

Search field used to select a Sub-Category so that only Lots for items with this Sub-Category defined on their Item Master General 1 tab will be updated. 

Item Search 1 - 5

Search fields used to select Item Search 1-5 user-defined options so that only Lots for items with these options defined on their Item Master User Fields tab will be updated,

Item Planner

Search field used to select an Item Planner so that only Lots for items with this Item Planner defined on their Item Master General 1 tab will be updated. 

Part Starts With

Only Lots for Parts that begin with the inputted string will be updated.

Update Expired Lots

If checked, expired lots are also updated when the transaction is executed. 

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