Is it possible to manually modify part costs?

SUGGESTED

We have found that t here are several parts that have costs that do not reflect the current cost of those parts.
We would like to  be able to modify the costs manually.

  • 0

    Under certain conditions the COST is adjustable, but it all depends on the COSTING METHOD that was chosen during the setup of the Parts module.

    The company COSTING Method can be found under  INVENTORY CONTROL -> UTILITIES -> DISPLAY STATUS

    A little snippet from the HELP in BW.....

    Basic terms & costing methods

    Each physical good that you sell or include with a service is called a part. The amount you pay for a part is the cost, and the amount you charge your customers for a part is the price. To expedite your sales, you may need to keep some parts in stock. All together, the parts that you have in stock make up your inventory. (For more definitions, see How I/C & O/E terms differ.)

    Using the available cost information, the system can compute the value of your inventory by any of four costing methods:

    • Standard costing: An arbitrary figure you assign to a part indicating what its value should be.

    • Average costing: If you use average costing, the system calculates a new unit cost each time parts are received.

    • First-in, first-out (FIFO): Under FIFO, parts are received and issued at their actual cost, and the oldest parts are assumed to be issued first.

    • Last-in, first-out (LIFO): Under LIFO, parts are received and issued at their actual cost, and the newest parts (most recently received) are assumed to be issued first.

    We recommend you discuss costing methods with your accountant before deciding on the costing method you use because the way you value your inventory can have a dramatic impact on your financial reports.

    Hope this  helps you

  • 0 in reply to Vince Settipane

    Hi!  Thanks for the reply.  
    It looks like our, very established, system was setup with the FIFO costing method.
    So, is it possible to manual adjust the part cost?

  • 0 in reply to gdiDave
    SUGGESTED

    The DEMO company that is with BW, is setup as FIFO,  and I could not change the cost.  As it is stated in the Definitions, parts are rec'd and issued with the actual cost.

    You may have to work with Sage and your Accountant, if you desire to have the ability to change COST. 

  • 0 in reply to Vince Settipane

    Ok.  Thanks again for the info.

  • 0 in reply to gdiDave
    SUGGESTED

    gdiDave-

    Your costing method controls how cost is stored for your coming.  When the Inventory Control module is first created, you are asked to select a costing method for your company.  If you are using FIFO, as you receive in Quantity, you will also enter a cost for that quantity.  The system will store cost using FIFO (First In, First Out).  If there is not one particular transaction that is causing your cost to be off, then you can adjust the quantity of the part to zero on hand quantity.  Next, adjust the correct quantity back in at the correct cost.  This will reset your unit cost for the part.

    For more information on adjusting the unit cost, please see article in our Knowledge Base How to change the unit cost of a part (18789)

    https://support.na.sage.com/selfservice/viewdocument.do?externalID=18789

    If you are looking to change your Costing Method, we have an article for that as well.  See article

    How to change the Inventory costing method (20565)

    https://support.na.sage.com/selfservice/viewdocument.do?externalID=20565

    Sincerely,

    Coleen