Material Costs in reference to routings

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I am stumped and need to find some answers, hopefully someone here can help?

On the routings, each material item has an associated "Material Cost", I am trying to determine where is cost is coming from. It doesn't matter to me if the material part if purchased or manufactured. What I am seeing in our system is a lot of inconsistency. For purchasing items, I have looked at the purchase orders/invoicing, but that doesn't match up (we do use 'average', but even then it's not close.) On manufacturing items, I looked at the Work Orders completed and tried to get the cost from there, but again, nothing is coming close. I've looked at "Inventory Transaction Distribution" and still not finding what I need.

Does anyone know how the "Material Cost" gets updated? (we are on SAGE MAS 500 2013). Thanks for any input/ideas!

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  • 0

    Alford - can you be more specific about what cost you are looking at?  What report, explorer or screen are you reviewing the cost on?

    There are a lot of places you could be looking at and many of these have different sources.  Routings generally pull the standard cost for purchased items.  Work Orders will generally pull the cost based on the valuation method of the item and the current status of the cost tiers at the time the transaction is processed.  For a Routing, if the item is a sub-assembly and you reference the sub-assembly routing on the higher level routing the system will explode the sub-assembly routing to capture the costs.

    The best report to review costs for a Routing is the Bill of Material Report - but only after you ensure that the routing has been updated with current costs.  This happens by either saving the routing or running the BOM Regen.

  • +1 in reply to RussG
    verified answer

    Alford -

    The answer is a little challenging without looking at your environment.  However, I think you can follow these steps to find the cost that is being used.  And remember these might be out of sync if you have not recently run the BOM Regen for the routing or you have not saved the routing recently.  (Note: This is a maintenance activity that many companies work with their partners to automate.)

    For the Bill of Materials Explorer, the cost of a raw material displayed here will come from one of the following:

    a) If your routing step has both the Item and a Warehouse specified, then the cost will be based on the Standard Cost as defined in the task Maintain Inventory for this Item/Warehouse combination.

    b) If your routing step has only the item and the warehouse value is blank, but there is a default warehouse assigned for this item within the Maintain Item task, then the cost will be based on the Standard Cost as defined in the task Maintain Inventory for this Item/Default Warehouse combination.

    c) If your routing step has only the item and there is not default warehouse assigned for this item on the Maintain Item task, but there is a warehouse on the Routing Header, then the cost will be based on the Standard Cost as defined in the task Maintain Inventory for this Item/Routing Header Warehouse combination.

    d) If there is no warehouse defined on the Routing Step, no default warehouse for the item on the Maintain Item task, and the routing header does not have a warehouse, then the cost will be based on the Standard Cost as defined in the task Maintain Item for this item.

    With regard to the work order transaction, this will be based on the current value of inventory at the time of the transaction.  This will fluctuate over time.

    Regards,

    Russ Griffith 

    RKL eSolutions, LLC

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  • +1 in reply to RussG
    verified answer

    Alford -

    The answer is a little challenging without looking at your environment.  However, I think you can follow these steps to find the cost that is being used.  And remember these might be out of sync if you have not recently run the BOM Regen for the routing or you have not saved the routing recently.  (Note: This is a maintenance activity that many companies work with their partners to automate.)

    For the Bill of Materials Explorer, the cost of a raw material displayed here will come from one of the following:

    a) If your routing step has both the Item and a Warehouse specified, then the cost will be based on the Standard Cost as defined in the task Maintain Inventory for this Item/Warehouse combination.

    b) If your routing step has only the item and the warehouse value is blank, but there is a default warehouse assigned for this item within the Maintain Item task, then the cost will be based on the Standard Cost as defined in the task Maintain Inventory for this Item/Default Warehouse combination.

    c) If your routing step has only the item and there is not default warehouse assigned for this item on the Maintain Item task, but there is a warehouse on the Routing Header, then the cost will be based on the Standard Cost as defined in the task Maintain Inventory for this Item/Routing Header Warehouse combination.

    d) If there is no warehouse defined on the Routing Step, no default warehouse for the item on the Maintain Item task, and the routing header does not have a warehouse, then the cost will be based on the Standard Cost as defined in the task Maintain Item for this item.

    With regard to the work order transaction, this will be based on the current value of inventory at the time of the transaction.  This will fluctuate over time.

    Regards,

    Russ Griffith 

    RKL eSolutions, LLC

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