Outside Process

[Lori Gibbs]

Hi List;
We are using the outside processing feature of JDE. I understand the *op10 set up & such. Most of the items we send out for outside processing have something manufactured in house - and then sent outside for the processing. We have one item that is purchased sent to another vendor(s) for the processing then it is received in house. We do not receive the part until it is complete with all processes complete. Cost accounting is having issues with this item increasing each time it is rolled (Frozen) They want me to change the purchased item into a manufactured item - then they will be happy. On the other hand - we never make this part - If I change this to an M for cost accounting - how will purchasing get the p.o. for the original part to get the process going? The original vendor ships the item to the next vendor - then we receive it. Any ideas?

 

[DSauve]

Lori,

When you say "Cost accounting is having issues with this item increasing each time it is rolled (Frozen)," do you mean that the price that the final supplier is charging keeps increasing? To me, that's an ongoing issue that can happen with any item -- outside processing or otherwise. I believe you should stick to your guns and keep the item as a purchased item. This will cause PO's to be created correctly. And since you never make it, it makes NO sense to class it as manufactured. Furthermore, we have had problems creating WO's for purchased items (and vice-versa) in that JDE's costing doesn't handle the different cost components very well when mixing stocking type and order types. I'd say your cost accounting group is going to have to just live with the price changes.

My 2 cents (and then some)!

 

[Lori Gibbs]

The supplier is not increasing their charges - the system is readding the original purchased price. The solution that purchasing and cost accounting have just (5 minutes ago) agreed upon is to create another number as an M type, attach the purchased item to it in the bill of material, then re-create all of teh *op10 items. Then of course all of the items that use this item will have to be updated as well. I was hoping that there might be a function or process with in the purchasing area to cover this without having to create yet more part numbers. Thanks for your input -

 

[bruce_meyer]

In the standard JDE setup, the completed part is a manufactured part. The
WO process will create *OP records when created based on the routing file or
they can be created manually. The individual purchase costs can then be
maintained on these *OP parts and the costs rolled and frozen. When the WO
for the completed part is created, it will create a PO for the *OP parts for
the item.

 

[Krofire.com]

Lori,

I have seen this issue before. In fact it is possible to get around the issue with correct setup of the R30812 Processing Option tabs "Default" & "Processing". I think the issues only effects users who do seperate rollups for Purchased and then Manufactured Items.

The solution is NOT to set the Purchased Item as Manufactured.

The R30812 has "From" Cost Methods and a "To" Cost Method. They cannot be the same for a Purchased Part. Be careful with the "Clear & Recalculate" Processing Option as well. This is a fixable problem. I do recall that there was something a little screwy with the JDE logic but everyone was happy with the reconfiguration and I have long since forgotten the details of the problem.

Give us greater insight into your Cost practices and Procesing Options and maybe I can comment further.

 

[Paolo_Papetti]

Lori,

by the sound of it I came across this issue before. Do you mean that everytime you run the R30812 the D1 cost in F30026 is accrued into the total simulated cost for the outside operation item? I'm adamant there is a SAR for that but a possible workaround is changing the Processing Option for Outside Operation items in R30812 to a non-existing value; say if you are using standard cost for that item set it to 99. Let me know if that helps.
Paolo

 

[canderson]

Mark,
I am in cost accounting and working with Lori at Lochinvar. I had contacted JDE support and they told me pretty much what you were saying. When I tried that process, while on the phone with JDE, it still did not correct my problem. Now I wonder if he was telling me the right things to do. I will send you an email with my setups for the simulation program and tell me what you think. It might be a day or two.

Thanks,
Carrie Anderson
Lochinvar Corporation
[email protected]