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Updating std cost for manufactured items using R30835

dpelchat

Active Member
Hi, I'm really not an expert in cost so bear with me... Here is the situation I'm facing.

Our B/P constants inventory cost method is set to use 02-Weighted average since most of the products are purchased. We also have manufactured items for which we use 07-Std Cost. All items are set to use level 3 costing (item/branch/location).

Say, I manually add a manufactured item to a location. At this point, no cost record is created in the F4105. I then I run the Cost Rollup (R30835) for this item, using 07-Std Cost. The R30825 will create the cost entry in F4105, using the primary location's cost, which is fine, but will not copy the Inventory/Sales cost method to this location (CSIN value is empty). The Inventory/Sales cost method is defaulted from the B/P constants, and since I have no cost line for 02-Weighted average, the value is not set.

If I change the B/P constants to use 07, the value is updated just fine, but we can't set it this way, obviously!

It seems as if there is something missing... Or am I missing something?

Thanks for your help!
 

RussellCodlin

Reputable Poster
As per the manual:
[FONT=&quot]You should assign cost level 3 if you use actual costing. For configured items, you must assign cost level 3. However, the system does not support cost level 3 for standard costing.[/FONT]
 

dpelchat

Active Member
Thanks for the reply Russel. I saw this in the documentation as well.

I spoke again to the users and what they want is a little weird. They want to use the cost rollup to update the std cost in the primary locations but use the weighted average in all other locations. When we let the system create the cost with the first transaction in the location, it creates the F4105 records the right way. I guess the quickest way to achieve this would be to not let the R30835 create the missing costs in all non-primary locations, and let the system handle it whenever a transaction occurs.
 

RussellCodlin

Reputable Poster
So basically they want to be a half pregnant. The only comment I'll make without knowing your business is what they're asking for is playing with fire. I've seen companies muck around with costing and inventory valuations before. In small scale it can sometimes be controlled but these things tend to snowball and before you know it someone is having to explain to the board why there was a $10M write down in inventory valuation at the end of the year.
 
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