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Costing

skyap

Member
OneWorld B732 SP12.2

Is there any users successfully using the OneWorld weighted average costing and would like to share their experience?
 

Sef

VIP Member
Hi,

Better late than never, but since no answers were posted, I'll give you my experiences:

** Average costing kinda works **

First of all, you need a good business case to apply average costing (eg due to volatility of component cost, or price dependency on item cost, maybe complex interbranch and/or intercompany arrangements). Standard costing is definitely far less complex and if the accountants are happy with catching variances in separate accounts, this is the way to go.

However if you do decide to go down the average costing way, the best advice I can give is to test, test, test and test again. At your release of OW you will find numerous issues, most of which have had SAR's and Paperfixes raised against.

In Sales Order Processing you will need to be aware of potential cost changes all the way through your process. Eg Ship Confirm will automatically re-cost. Re-costing can also be run at end of day (generally not advisable) or after key processes such as pick slip print and mfg cost roll up. Timing is of the essence and you will need a very good reporting structure to ensure integrity between Item ledger and G/L. Also Sales transfers are a potential "trap for young players" and clearing accounts all of a sudden have unexplained remnants if you don't have to appropriate processes in place.

On the purchasing site, dealing with landed costing can get quite complex and modifications to ensure correct accounts are being hit are quite common.

I don't have any experience in manufacturing with average costing, but if applicable: test, test and test again.

Your test scenario should also review all the reversing processes (credit notes, receipt reversals, voids etc).

In short, Average costing does work, but count on significant extra overhead for fixes, testing, integrity checking and issue resolution.

Hope I didn't scare you too much and good luck,


Sef van den Nieuwelaar
Australia
B732 on NT, XE on NT, B732/A73 on AS400, B733 on NT
 

gerardj1

Member
hi ,

this is regarding the UBE in inventory management R41811 for 'Update Average Cost'. there are some items which have only current cost defined. now there is a need to add a weighted average cost for those items. since there is no record for weighted average cost, the cost needs to be calculated and then inserted in the file (F4105).

will running the R41811 after just defining '02' method defined with cost =0, calculate the correct weighted average cost based upon existing ledger transactions and update F4105.

bye!
 
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