Accounting Gurus Needed

system · September 13, 2007, 10:49am

When you mention they stay on the report until you run the COS-WIP
report would this also explain why these transactions stay on the report
despite the fact that they did NOT occur on a particular day you run the
report?

M. Manasa Reddy

manasa@...

P: 630-806-2000

F: 630-806-2001

________________________________

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
Of Stuart Noble
Sent: Wednesday, August 29, 2007 5:42 PM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] Accounting Gurus Needed

MFG-VAR transactions are created automatically when the cost of your job
differs from the expected standard cost. If your part is valued at 100
dollars and you make it for 120, there is a 20 dollar manufacturing
variance.
They remain as phantom transactions until you actually post the COS-WIP
reconciliation, when they become actual purges.

Hope this helps
Stuart

-----Original Message-----
From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Manasa Reddy
Sent: Thursday, 30 August 2007 7:50 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
Subject: [Vantage] Accounting Gurus Needed

When we run the Inventory WIP report we see a lot of MFG-VAR
transactions. Now my understanding is that you would be doing job
adjustments for these transactions to happen. However, I have never
done this and I am the only one with access to it. So, obviously I am
missing something, so please what else could cause these transactions.

Also, on top of this, these transactions are marked as Phantom purge WIP
to Variance. That needs to be explained...no idea what this is about.

Any help is appreciated!

TIA,

M. Manasa Reddy
ERP / Inventory & Procurement Manager
Welding Company of America
manasa@... <mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
P: 630-806-2000
F: 630-806-2001

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]

system · August 29, 2007, 6:31pm

When we run the Inventory WIP report we see a lot of MFG-VAR
transactions. Now my understanding is that you would be doing job
adjustments for these transactions to happen. However, I have never
done this and I am the only one with access to it. So, obviously I am
missing something, so please what else could cause these transactions.

Also, on top of this, these transactions are marked as Phantom purge WIP
to Variance. That needs to be explained...no idea what this is about.

Any help is appreciated!

TIA,

M. Manasa Reddy
ERP / Inventory & Procurement Manager
Welding Company of America
manasa@...
P: 630-806-2000
F: 630-806-2001

[Non-text portions of this message have been removed]

system · August 29, 2007, 6:55pm

MFG-VAR transactions can appear after a job is closed, captured, reopened and transacted.

----- Original Message -----
From: "Manasa Reddy" <manasa@...>
To: <vantage@yahoogroups.com>
Sent: Wednesday, August 29, 2007 2:50 PM
Subject: [Vantage] Accounting Gurus Needed

When we run the Inventory WIP report we see a lot of MFG-VAR
transactions. Now my understanding is that you would be doing job
adjustments for these transactions to happen. However, I have never
done this and I am the only one with access to it. So, obviously I am
missing something, so please what else could cause these transactions.

Also, on top of this, these transactions are marked as Phantom purge WIP
to Variance. That needs to be explained...no idea what this is about.

Any help is appreciated!

TIA,

M. Manasa Reddy
ERP / Inventory & Procurement Manager
Welding Company of America
manasa@...
P: 630-806-2000
F: 630-806-2001

[Non-text portions of this message have been removed]

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[Non-text portions of this message have been removed]

system · August 29, 2007, 9:50pm

These are variances that are left behind after transactions have been
made to stock or Cost of Sale

i.e. Job for one unit at an actual Cost of $500. Received to Stock at
a standard of $400. This will leave $100 behind the system has to do
something with. This same principal applies, if costs go to cost of
sale with a part master at standard costing method for make direct
shipments

You may be get variances for average costed (actual in Make direct),
but these are created less often.

The system creates these variances when you close the job and capture
COS/WIP is run, as it uses this process to purge the WIP value and
clears down any cost left to either COS or variance.

In short, all transactions from the jobs must equal the actual job cost
upon capture COS WIP processing a closed Job

MFG-CUS + MFG-STK (Costing Method Cost at point of receipt to Stock) +
MFG-VAR (Created to make up the Balance) = Actual Job Cost

This is why if you close a job that has not been shipped or received to
stock yet, all the cost will remain in the job at point of running
Capture COS/WIP and all this cost will be purged and varianced. If this
job is reopened and then received into stock or shipped after theses
variances had been created, you will find the remaining transaction to
Stock or cost of sale will be zero as the accounts had already relieved
the cost to the variance nominal.

Gary

Dot Net IT Limited, Reg No 4412519

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
Of Manasa Reddy
Sent: 29 August 2007 22:50
To: vantage@yahoogroups.com
Subject: [Vantage] Accounting Gurus Needed

When we run the Inventory WIP report we see a lot of MFG-VAR
transactions. Now my understanding is that you would be doing job
adjustments for these transactions to happen. However, I have never
done this and I am the only one with access to it. So, obviously I am
missing something, so please what else could cause these transactions.

Also, on top of this, these transactions are marked as Phantom purge WIP
to Variance. That needs to be explained...no idea what this is about.

Any help is appreciated!

TIA,

M. Manasa Reddy
ERP / Inventory & Procurement Manager
Welding Company of America
manasa@... <mailto:manasa%40weldcoa.com>
P: 630-806-2000
F: 630-806-2001

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]

system · August 30, 2007, 8:46am

The same is true with the actual average cost system. How the system
determines cost when partial production runs are received to stock
causes the parts in stock to take more unit value than the job has
absorbed.

Bruce Butler

IT Manager

Knappe & Koester, Inc.

_____

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
Of Gary Parfrey
Sent: Wednesday, August 29, 2007 9:47 PM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] Accounting Gurus Needed

These are variances that are left behind after transactions have been
made to stock or Cost of Sale

i.e. Job for one unit at an actual Cost of $500. Received to Stock at
a standard of $400. This will leave $100 behind the system has to do
something with. This same principal applies, if costs go to cost of
sale with a part master at standard costing method for make direct
shipments

You may be get variances for average costed (actual in Make direct),
but these are created less often.

The system creates these variances when you close the job and capture
COS/WIP is run, as it uses this process to purge the WIP value and
clears down any cost left to either COS or variance.

In short, all transactions from the jobs must equal the actual job cost
upon capture COS WIP processing a closed Job

MFG-CUS + MFG-STK (Costing Method Cost at point of receipt to Stock) +
MFG-VAR (Created to make up the Balance) = Actual Job Cost

This is why if you close a job that has not been shipped or received to
stock yet, all the cost will remain in the job at point of running
Capture COS/WIP and all this cost will be purged and varianced. If this
job is reopened and then received into stock or shipped after theses
variances had been created, you will find the remaining transaction to
Stock or cost of sale will be zero as the accounts had already relieved
the cost to the variance nominal.

Gary

Dot Net IT Limited, Reg No 4412519

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Manasa Reddy
Sent: 29 August 2007 22:50
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
Subject: [Vantage] Accounting Gurus Needed

When we run the Inventory WIP report we see a lot of MFG-VAR
transactions. Now my understanding is that you would be doing job
adjustments for these transactions to happen. However, I have never
done this and I am the only one with access to it. So, obviously I am
missing something, so please what else could cause these transactions.

Also, on top of this, these transactions are marked as Phantom purge WIP
to Variance. That needs to be explained...no idea what this is about.

Any help is appreciated!

TIA,

M. Manasa Reddy
ERP / Inventory & Procurement Manager
Welding Company of America
manasa@... <mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
P: 630-806-2000
F: 630-806-2001

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]

system · August 30, 2007, 9:29am

To add ot the other points already nade....this situaiton causes us no end of grief in determining part profitability for invoiced sales. Because if these costs get posted to MFG-VAR at job closing, well after the last shipment, any invoiced based report does not contain the true costs associated with the shipped parts. The invoice table costs are frozen at the time of invoicing so never get the MFG-VAR amount. We call these missing costs "phantom costs" and I've had to create reports that grab PartTran MFG-VAR transactions and spread them back over the invoices (Cost / JobQtyShipped * Invoiced Qty) in order to see the real margin on part sales. Really frustrates our CEO when a large "closed short" or "late subcontractor invoice" skews a part's profitability downward months later. Some of this is self-inflicted by not running jobs out but rather keeping them open for months and shoving short batches through the processes to then ship form WIP.

But an awareness of how MFG-VAR will affect any invoice based margin report is still good to have.
-Todd C.

________________________________
From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of Manasa Reddy
Sent: Wednesday, August 29, 2007 4:50 PM
To: vantage@yahoogroups.com
Subject: [Vantage] Accounting Gurus Needed

When we run the Inventory WIP report we see a lot of MFG-VAR
transactions. Now my understanding is that you would be doing job
adjustments for these transactions to happen. However, I have never
done this and I am the only one with access to it. So, obviously I am
missing something, so please what else could cause these transactions.

Also, on top of this, these transactions are marked as Phantom purge WIP
to Variance. That needs to be explained...no idea what this is about.

Any help is appreciated!

TIA,

M. Manasa Reddy
ERP / Inventory & Procurement Manager
Welding Company of America
manasa@...<mailto:manasa%40weldcoa.com>
P: 630-806-2000
F: 630-806-2001

[Non-text portions of this message have been removed]

________________________________
The information contained in this E-mail message and any documents which may be attached are privileged and confidential, and may be protected from disclosure.

Please be aware that any use, printing, copying, disclosure or dissemination of this communication may be subject to legal restriction or sanction. If you think you have received this message in error, please reply to the sender.

For more information please visit www.harveyvogel.com

[Non-text portions of this message have been removed]

system · August 30, 2007, 10:04am

See there is a reason why I am not a finance person!

I am so confused with this because I close my jobs before we ship. We
buy everything to stock, not to a job. So I still don't understand why
these transactions should happen.

We do average costing. So are these happening because my "average cost"
on the material is an estimate on my job, and then when we replenish our
stock, if the cost re-evaluates the part at a different price that
difference hits my Purchase Price Variance account and or my
Manufacturing variance account?

M. Manasa Reddy

manasa@...

P: 630-806-2000

F: 630-806-2001

________________________________

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
Of Todd Caughey
Sent: Thursday, August 30, 2007 8:29 AM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] Accounting Gurus Needed

To add ot the other points already nade....this situaiton causes us no
end of grief in determining part profitability for invoiced sales.
Because if these costs get posted to MFG-VAR at job closing, well after
the last shipment, any invoiced based report does not contain the true
costs associated with the shipped parts. The invoice table costs are
frozen at the time of invoicing so never get the MFG-VAR amount. We call
these missing costs "phantom costs" and I've had to create reports that
grab PartTran MFG-VAR transactions and spread them back over the
invoices (Cost / JobQtyShipped * Invoiced Qty) in order to see the real
margin on part sales. Really frustrates our CEO when a large "closed
short" or "late subcontractor invoice" skews a part's profitability
downward months later. Some of this is self-inflicted by not running
jobs out but rather keeping them open for months and shoving short
batches through the processes to th en ship form WIP.

But an awareness of how MFG-VAR will affect any invoice based margin
report is still good to have.
-Todd C.

________________________________
From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com> ] On
Behalf Of Manasa Reddy
Sent: Wednesday, August 29, 2007 4:50 PM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
Subject: [Vantage] Accounting Gurus Needed

When we run the Inventory WIP report we see a lot of MFG-VAR
transactions. Now my understanding is that you would be doing job
adjustments for these transactions to happen. However, I have never
done this and I am the only one with access to it. So, obviously I am
missing something, so please what else could cause these transactions.

Also, on top of this, these transactions are marked as Phantom purge WIP
to Variance. That needs to be explained...no idea what this is about.

Any help is appreciated!

TIA,

M. Manasa Reddy
ERP / Inventory & Procurement Manager
Welding Company of America
manasa@... <mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
P: 630-806-2000
F: 630-806-2001

[Non-text portions of this message have been removed]

________________________________
The information contained in this E-mail message and any documents which
may be attached are privileged and confidential, and may be protected
from disclosure.

Please be aware that any use, printing, copying, disclosure or
dissemination of this communication may be subject to legal restriction
or sanction. If you think you have received this message in error,
please reply to the sender.

For more information please visit www.harveyvogel.com

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]

system · August 30, 2007, 10:24am

Well if when the parts are posted to stock there are items not received
or more labor is posted after the button is clicked to post the parts to
storage then that cost will go to the variance account. For us it can
be DMRs that are answered after posting, invoice adjustment after
posting, or extra labor that might be charged to the job after posting.

________________________________

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
Of Manasa Reddy
Sent: Thursday, August 30, 2007 10:01 AM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] Accounting Gurus Needed

See there is a reason why I am not a finance person!

I am so confused with this because I close my jobs before we ship. We
buy everything to stock, not to a job. So I still don't understand why
these transactions should happen.

We do average costing. So are these happening because my "average cost"
on the material is an estimate on my job, and then when we replenish our
stock, if the cost re-evaluates the part at a different price that
difference hits my Purchase Price Variance account and or my
Manufacturing variance account?

M. Manasa Reddy

manasa@... <mailto:manasa%40weldcoa.com>

P: 630-806-2000

F: 630-806-2001

________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Todd Caughey
Sent: Thursday, August 30, 2007 8:29 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

To add ot the other points already nade....this situaiton causes us no
end of grief in determining part profitability for invoiced sales.
Because if these costs get posted to MFG-VAR at job closing, well after
the last shipment, any invoiced based report does not contain the true
costs associated with the shipped parts. The invoice table costs are
frozen at the time of invoicing so never get the MFG-VAR amount. We call
these missing costs "phantom costs" and I've had to create reports that
grab PartTran MFG-VAR transactions and spread them back over the
invoices (Cost / JobQtyShipped * Invoiced Qty) in order to see the real
margin on part sales. Really frustrates our CEO when a large "closed
short" or "late subcontractor invoice" skews a part's profitability
downward months later. Some of this is self-inflicted by not running
jobs out but rather keeping them open for months and shoving short
batches through the processes to th en ship form WIP.

But an awareness of how MFG-VAR will affect any invoice based margin
report is still good to have.
-Todd C.

________________________________
From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf Of Manasa Reddy
Sent: Wednesday, August 29, 2007 4:50 PM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: [Vantage] Accounting Gurus Needed

When we run the Inventory WIP report we see a lot of MFG-VAR
transactions. Now my understanding is that you would be doing job
adjustments for these transactions to happen. However, I have never
done this and I am the only one with access to it. So, obviously I am
missing something, so please what else could cause these transactions.

Also, on top of this, these transactions are marked as Phantom purge WIP
to Variance. That needs to be explained...no idea what this is about.

Any help is appreciated!

TIA,

M. Manasa Reddy
ERP / Inventory & Procurement Manager
Welding Company of America
manasa@... <mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
P: 630-806-2000
F: 630-806-2001

[Non-text portions of this message have been removed]

________________________________
The information contained in this E-mail message and any documents which
may be attached are privileged and confidential, and may be protected
from disclosure.

Please be aware that any use, printing, copying, disclosure or
dissemination of this communication may be subject to legal restriction
or sanction. If you think you have received this message in error,
please reply to the sender.

For more information please visit www.harveyvogel.com

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]

This message has been processed via your triumphgroup.com e-mail
address.

[Non-text portions of this message have been removed]

system · August 30, 2007, 10:24am

Are you charging anything to those jobs after you close them? all labor
transactions are keyed in prior to you closing the job?

________________________________

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
Of Manasa Reddy
Sent: Thursday, August 30, 2007 9:01 AM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] Accounting Gurus Needed

See there is a reason why I am not a finance person!

I am so confused with this because I close my jobs before we ship. We
buy everything to stock, not to a job. So I still don't understand why
these transactions should happen.

We do average costing. So are these happening because my "average cost"
on the material is an estimate on my job, and then when we replenish our
stock, if the cost re-evaluates the part at a different price that
difference hits my Purchase Price Variance account and or my
Manufacturing variance account?

M. Manasa Reddy

manasa@... <mailto:manasa%40weldcoa.com>

P: 630-806-2000

F: 630-806-2001

________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Todd Caughey
Sent: Thursday, August 30, 2007 8:29 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

To add ot the other points already nade....this situaiton causes us no
end of grief in determining part profitability for invoiced sales.
Because if these costs get posted to MFG-VAR at job closing, well after
the last shipment, any invoiced based report does not contain the true
costs associated with the shipped parts. The invoice table costs are
frozen at the time of invoicing so never get the MFG-VAR amount. We call
these missing costs "phantom costs" and I've had to create reports that
grab PartTran MFG-VAR transactions and spread them back over the
invoices (Cost / JobQtyShipped * Invoiced Qty) in order to see the real
margin on part sales. Really frustrates our CEO when a large "closed
short" or "late subcontractor invoice" skews a part's profitability
downward months later. Some of this is self-inflicted by not running
jobs out but rather keeping them open for months and shoving short
batches through the processes to th en ship form WIP.

But an awareness of how MFG-VAR will affect any invoice based margin
report is still good to have.
-Todd C.

________________________________
From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf Of Manasa Reddy
Sent: Wednesday, August 29, 2007 4:50 PM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: [Vantage] Accounting Gurus Needed

When we run the Inventory WIP report we see a lot of MFG-VAR
transactions. Now my understanding is that you would be doing job
adjustments for these transactions to happen. However, I have never
done this and I am the only one with access to it. So, obviously I am
missing something, so please what else could cause these transactions.

Also, on top of this, these transactions are marked as Phantom purge WIP
to Variance. That needs to be explained...no idea what this is about.

Any help is appreciated!

TIA,

M. Manasa Reddy
ERP / Inventory & Procurement Manager
Welding Company of America
manasa@... <mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
P: 630-806-2000
F: 630-806-2001

[Non-text portions of this message have been removed]

________________________________
The information contained in this E-mail message and any documents which
may be attached are privileged and confidential, and may be protected
from disclosure.

Please be aware that any use, printing, copying, disclosure or
dissemination of this communication may be subject to legal restriction
or sanction. If you think you have received this message in error,
please reply to the sender.

For more information please visit www.harveyvogel.com

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]

system · August 30, 2007, 10:25am

That's exactly why it happens. You should not close Jobs when using
Average costing before the items are shipped

1) Job costs $500.

2) You then close job.

3) Capture COS WIP purges any remaining costs from job (MFG-VAR of
$500)

4) Job gets shipped, (More than likely at Zero Cost (MFG-CUS) and
100% Margin)

Your Variances are crated between 2 and 3. The following should be
followed

1) Job costs $500.

2) You then complete but not close the job.

3) Job gets shipped, (More than likely at $500 Cost of Sale
(MFG-CUS)and Correct Margin)

4) You then close the job

5) Capture COS WIP purges any remaining costs from job (No or
minimum MFG-VAR because the cost has already gone to COS in item 3)

Gary Parfrey

Dot Net IT Limited, Reg No 4412519

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
Of Manasa Reddy
Sent: 30 August 2007 15:01
To: vantage@yahoogroups.com
Subject: RE: [Vantage] Accounting Gurus Needed

See there is a reason why I am not a finance person!

I am so confused with this because I close my jobs before we ship. We
buy everything to stock, not to a job. So I still don't understand why
these transactions should happen.

We do average costing. So are these happening because my "average cost"
on the material is an estimate on my job, and then when we replenish our
stock, if the cost re-evaluates the part at a different price that
difference hits my Purchase Price Variance account and or my
Manufacturing variance account?

M. Manasa Reddy

manasa@... <mailto:manasa%40weldcoa.com>

P: 630-806-2000

F: 630-806-2001

________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Todd Caughey
Sent: Thursday, August 30, 2007 8:29 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

To add ot the other points already nade....this situaiton causes us no
end of grief in determining part profitability for invoiced sales.
Because if these costs get posted to MFG-VAR at job closing, well after
the last shipment, any invoiced based report does not contain the true
costs associated with the shipped parts. The invoice table costs are
frozen at the time of invoicing so never get the MFG-VAR amount. We call
these missing costs "phantom costs" and I've had to create reports that
grab PartTran MFG-VAR transactions and spread them back over the
invoices (Cost / JobQtyShipped * Invoiced Qty) in order to see the real
margin on part sales. Really frustrates our CEO when a large "closed
short" or "late subcontractor invoice" skews a part's profitability
downward months later. Some of this is self-inflicted by not running
jobs out but rather keeping them open for months and shoving short
batches through the processes to th en ship form WIP.

But an awareness of how MFG-VAR will affect any invoice based margin
report is still good to have.
-Todd C.

________________________________
From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf Of Manasa Reddy
Sent: Wednesday, August 29, 2007 4:50 PM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: [Vantage] Accounting Gurus Needed

When we run the Inventory WIP report we see a lot of MFG-VAR
transactions. Now my understanding is that you would be doing job
adjustments for these transactions to happen. However, I have never
done this and I am the only one with access to it. So, obviously I am
missing something, so please what else could cause these transactions.

Also, on top of this, these transactions are marked as Phantom purge WIP
to Variance. That needs to be explained...no idea what this is about.

Any help is appreciated!

TIA,

M. Manasa Reddy
ERP / Inventory & Procurement Manager
Welding Company of America
manasa@... <mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
P: 630-806-2000
F: 630-806-2001

[Non-text portions of this message have been removed]

________________________________
The information contained in this E-mail message and any documents which
may be attached are privileged and confidential, and may be protected
from disclosure.

Please be aware that any use, printing, copying, disclosure or
dissemination of this communication may be subject to legal restriction
or sanction. If you think you have received this message in error,
please reply to the sender.

For more information please visit www.harveyvogel.com

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]

system · August 30, 2007, 10:31am

I do the "labor transaction", then the job receipt to inventory, then
close the job, where it asks if I want to backflush. It backflushes and
then closes the job. Then we ship.

I never go back to reopen the job.

We decided to backflush time and material because our guys do NOT clock
into jobs.

M. Manasa Reddy

manasa@...

P: 630-806-2000

F: 630-806-2001

________________________________

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
Of Darren Mann
Sent: Thursday, August 30, 2007 9:15 AM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] Accounting Gurus Needed

Are you charging anything to those jobs after you close them? all labor
transactions are keyed in prior to you closing the job?

________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Manasa Reddy
Sent: Thursday, August 30, 2007 9:01 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

See there is a reason why I am not a finance person!

I am so confused with this because I close my jobs before we ship. We
buy everything to stock, not to a job. So I still don't understand why
these transactions should happen.

We do average costing. So are these happening because my "average cost"
on the material is an estimate on my job, and then when we replenish our
stock, if the cost re-evaluates the part at a different price that
difference hits my Purchase Price Variance account and or my
Manufacturing variance account?

M. Manasa Reddy

manasa@... <mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>

P: 630-806-2000

F: 630-806-2001

________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Todd Caughey
Sent: Thursday, August 30, 2007 8:29 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

To add ot the other points already nade....this situaiton causes us no
end of grief in determining part profitability for invoiced sales.
Because if these costs get posted to MFG-VAR at job closing, well after
the last shipment, any invoiced based report does not contain the true
costs associated with the shipped parts. The invoice table costs are
frozen at the time of invoicing so never get the MFG-VAR amount. We call
these missing costs "phantom costs" and I've had to create reports that
grab PartTran MFG-VAR transactions and spread them back over the
invoices (Cost / JobQtyShipped * Invoiced Qty) in order to see the real
margin on part sales. Really frustrates our CEO when a large "closed
short" or "late subcontractor invoice" skews a part's profitability
downward months later. Some of this is self-inflicted by not running
jobs out but rather keeping them open for months and shoving short
batches through the processes to th en ship form WIP.

But an awareness of how MFG-VAR will affect any invoice based margin
report is still good to have.
-Todd C.

________________________________
From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf Of Manasa Reddy
Sent: Wednesday, August 29, 2007 4:50 PM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: [Vantage] Accounting Gurus Needed

When we run the Inventory WIP report we see a lot of MFG-VAR
transactions. Now my understanding is that you would be doing job
adjustments for these transactions to happen. However, I have never
done this and I am the only one with access to it. So, obviously I am
missing something, so please what else could cause these transactions.

Also, on top of this, these transactions are marked as Phantom purge WIP
to Variance. That needs to be explained...no idea what this is about.

Any help is appreciated!

TIA,

M. Manasa Reddy
ERP / Inventory & Procurement Manager
Welding Company of America
manasa@... <mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
P: 630-806-2000
F: 630-806-2001

[Non-text portions of this message have been removed]

________________________________
The information contained in this E-mail message and any documents which
may be attached are privileged and confidential, and may be protected
from disclosure.

Please be aware that any use, printing, copying, disclosure or
dissemination of this communication may be subject to legal restriction
or sanction. If you think you have received this message in error,
please reply to the sender.

For more information please visit www.harveyvogel.com

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]

system · August 30, 2007, 10:31am

So do this even for backflushing?

M. Manasa Reddy

manasa@...

P: 630-806-2000

F: 630-806-2001

________________________________

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
Of Gary Parfrey
Sent: Thursday, August 30, 2007 9:14 AM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] Accounting Gurus Needed

That's exactly why it happens. You should not close Jobs when using
Average costing before the items are shipped

1) Job costs $500.

2) You then close job.

3) Capture COS WIP purges any remaining costs from job (MFG-VAR of
$500)

4) Job gets shipped, (More than likely at Zero Cost (MFG-CUS) and
100% Margin)

Your Variances are crated between 2 and 3. The following should be
followed

1) Job costs $500.

2) You then complete but not close the job.

3) Job gets shipped, (More than likely at $500 Cost of Sale
(MFG-CUS)and Correct Margin)

4) You then close the job

5) Capture COS WIP purges any remaining costs from job (No or
minimum MFG-VAR because the cost has already gone to COS in item 3)

Gary Parfrey

Dot Net IT Limited, Reg No 4412519

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Manasa Reddy
Sent: 30 August 2007 15:01
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

See there is a reason why I am not a finance person!

I am so confused with this because I close my jobs before we ship. We
buy everything to stock, not to a job. So I still don't understand why
these transactions should happen.

We do average costing. So are these happening because my "average cost"
on the material is an estimate on my job, and then when we replenish our
stock, if the cost re-evaluates the part at a different price that
difference hits my Purchase Price Variance account and or my
Manufacturing variance account?

M. Manasa Reddy

manasa@... <mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>

P: 630-806-2000

F: 630-806-2001

________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Todd Caughey
Sent: Thursday, August 30, 2007 8:29 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

To add ot the other points already nade....this situaiton causes us no
end of grief in determining part profitability for invoiced sales.
Because if these costs get posted to MFG-VAR at job closing, well after
the last shipment, any invoiced based report does not contain the true
costs associated with the shipped parts. The invoice table costs are
frozen at the time of invoicing so never get the MFG-VAR amount. We call
these missing costs "phantom costs" and I've had to create reports that
grab PartTran MFG-VAR transactions and spread them back over the
invoices (Cost / JobQtyShipped * Invoiced Qty) in order to see the real
margin on part sales. Really frustrates our CEO when a large "closed
short" or "late subcontractor invoice" skews a part's profitability
downward months later. Some of this is self-inflicted by not running
jobs out but rather keeping them open for months and shoving short
batches through the processes to th en ship form WIP.

But an awareness of how MFG-VAR will affect any invoice based margin
report is still good to have.
-Todd C.

________________________________
From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf Of Manasa Reddy
Sent: Wednesday, August 29, 2007 4:50 PM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: [Vantage] Accounting Gurus Needed

When we run the Inventory WIP report we see a lot of MFG-VAR
transactions. Now my understanding is that you would be doing job
adjustments for these transactions to happen. However, I have never
done this and I am the only one with access to it. So, obviously I am
missing something, so please what else could cause these transactions.

Also, on top of this, these transactions are marked as Phantom purge WIP
to Variance. That needs to be explained...no idea what this is about.

Any help is appreciated!

TIA,

M. Manasa Reddy
ERP / Inventory & Procurement Manager
Welding Company of America
manasa@... <mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
P: 630-806-2000
F: 630-806-2001

[Non-text portions of this message have been removed]

________________________________
The information contained in this E-mail message and any documents which
may be attached are privileged and confidential, and may be protected
from disclosure.

Please be aware that any use, printing, copying, disclosure or
dissemination of this communication may be subject to legal restriction
or sanction. If you think you have received this message in error,
please reply to the sender.

For more information please visit www.harveyvogel.com

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]

system · August 30, 2007, 10:50am

Well if you backflush after you post to inventory there is the problem.

________________________________

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
Of Manasa Reddy
Sent: Thursday, August 30, 2007 10:29 AM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] Accounting Gurus Needed

I do the "labor transaction", then the job receipt to inventory, then
close the job, where it asks if I want to backflush. It backflushes and
then closes the job. Then we ship.

I never go back to reopen the job.

We decided to backflush time and material because our guys do NOT clock
into jobs.

M. Manasa Reddy

manasa@... <mailto:manasa%40weldcoa.com>

P: 630-806-2000

F: 630-806-2001

________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Darren Mann
Sent: Thursday, August 30, 2007 9:15 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

Are you charging anything to those jobs after you close them? all labor
transactions are keyed in prior to you closing the job?

________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Manasa Reddy
Sent: Thursday, August 30, 2007 9:01 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

See there is a reason why I am not a finance person!

I am so confused with this because I close my jobs before we ship. We
buy everything to stock, not to a job. So I still don't understand why
these transactions should happen.

We do average costing. So are these happening because my "average cost"
on the material is an estimate on my job, and then when we replenish our
stock, if the cost re-evaluates the part at a different price that
difference hits my Purchase Price Variance account and or my
Manufacturing variance account?

M. Manasa Reddy

manasa@... <mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>

P: 630-806-2000

F: 630-806-2001

________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Todd Caughey
Sent: Thursday, August 30, 2007 8:29 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

To add ot the other points already nade....this situaiton causes us no
end of grief in determining part profitability for invoiced sales.
Because if these costs get posted to MFG-VAR at job closing, well after
the last shipment, any invoiced based report does not contain the true
costs associated with the shipped parts. The invoice table costs are
frozen at the time of invoicing so never get the MFG-VAR amount. We call
these missing costs "phantom costs" and I've had to create reports that
grab PartTran MFG-VAR transactions and spread them back over the
invoices (Cost / JobQtyShipped * Invoiced Qty) in order to see the real
margin on part sales. Really frustrates our CEO when a large "closed
short" or "late subcontractor invoice" skews a part's profitability
downward months later. Some of this is self-inflicted by not running
jobs out but rather keeping them open for months and shoving short
batches through the processes to th en ship form WIP.

But an awareness of how MFG-VAR will affect any invoice based margin
report is still good to have.
-Todd C.

________________________________
From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf Of Manasa Reddy
Sent: Wednesday, August 29, 2007 4:50 PM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: [Vantage] Accounting Gurus Needed

When we run the Inventory WIP report we see a lot of MFG-VAR
transactions. Now my understanding is that you would be doing job
adjustments for these transactions to happen. However, I have never
done this and I am the only one with access to it. So, obviously I am
missing something, so please what else could cause these transactions.

Also, on top of this, these transactions are marked as Phantom purge WIP
to Variance. That needs to be explained...no idea what this is about.

Any help is appreciated!

TIA,

M. Manasa Reddy
ERP / Inventory & Procurement Manager
Welding Company of America
manasa@... <mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
P: 630-806-2000
F: 630-806-2001

[Non-text portions of this message have been removed]

________________________________
The information contained in this E-mail message and any documents which
may be attached are privileged and confidential, and may be protected
from disclosure.

Please be aware that any use, printing, copying, disclosure or
dissemination of this communication may be subject to legal restriction
or sanction. If you think you have received this message in error,
please reply to the sender.

For more information please visit www.harveyvogel.com

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]

This message has been processed via your triumphgroup.com e-mail
address.

[Non-text portions of this message have been removed]

system · August 30, 2007, 11:16am

Then when do you backflush your material?

And how?

M. Manasa Reddy

manasa@...

P: 630-806-2000

F: 630-806-2001

________________________________

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
Of Geary, Stephanie
Sent: Thursday, August 30, 2007 9:50 AM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] Accounting Gurus Needed

Well if you backflush after you post to inventory there is the problem.

________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Manasa Reddy
Sent: Thursday, August 30, 2007 10:29 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

I do the "labor transaction", then the job receipt to inventory, then
close the job, where it asks if I want to backflush. It backflushes and
then closes the job. Then we ship.

I never go back to reopen the job.

We decided to backflush time and material because our guys do NOT clock
into jobs.

M. Manasa Reddy

manasa@... <mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>

P: 630-806-2000

F: 630-806-2001

________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Darren Mann
Sent: Thursday, August 30, 2007 9:15 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

Are you charging anything to those jobs after you close them? all labor
transactions are keyed in prior to you closing the job?

________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Manasa Reddy
Sent: Thursday, August 30, 2007 9:01 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

See there is a reason why I am not a finance person!

I am so confused with this because I close my jobs before we ship. We
buy everything to stock, not to a job. So I still don't understand why
these transactions should happen.

We do average costing. So are these happening because my "average cost"
on the material is an estimate on my job, and then when we replenish our
stock, if the cost re-evaluates the part at a different price that
difference hits my Purchase Price Variance account and or my
Manufacturing variance account?

M. Manasa Reddy

manasa@... <mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>

P: 630-806-2000

F: 630-806-2001

________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Todd Caughey
Sent: Thursday, August 30, 2007 8:29 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

To add ot the other points already nade....this situaiton causes us no
end of grief in determining part profitability for invoiced sales.
Because if these costs get posted to MFG-VAR at job closing, well after
the last shipment, any invoiced based report does not contain the true
costs associated with the shipped parts. The invoice table costs are
frozen at the time of invoicing so never get the MFG-VAR amount. We call
these missing costs "phantom costs" and I've had to create reports that
grab PartTran MFG-VAR transactions and spread them back over the
invoices (Cost / JobQtyShipped * Invoiced Qty) in order to see the real
margin on part sales. Really frustrates our CEO when a large "closed
short" or "late subcontractor invoice" skews a part's profitability
downward months later. Some of this is self-inflicted by not running
jobs out but rather keeping them open for months and shoving short
batches through the processes to th en ship form WIP.

But an awareness of how MFG-VAR will affect any invoice based margin
report is still good to have.
-Todd C.

________________________________
From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf Of Manasa Reddy
Sent: Wednesday, August 29, 2007 4:50 PM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: [Vantage] Accounting Gurus Needed

When we run the Inventory WIP report we see a lot of MFG-VAR
transactions. Now my understanding is that you would be doing job
adjustments for these transactions to happen. However, I have never
done this and I am the only one with access to it. So, obviously I am
missing something, so please what else could cause these transactions.

Also, on top of this, these transactions are marked as Phantom purge WIP
to Variance. That needs to be explained...no idea what this is about.

Any help is appreciated!

TIA,

M. Manasa Reddy
ERP / Inventory & Procurement Manager
Welding Company of America
manasa@... <mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
P: 630-806-2000
F: 630-806-2001

[Non-text portions of this message have been removed]

________________________________
The information contained in this E-mail message and any documents which
may be attached are privileged and confidential, and may be protected
from disclosure.

Please be aware that any use, printing, copying, disclosure or
dissemination of this communication may be subject to legal restriction
or sanction. If you think you have received this message in error,
please reply to the sender.

For more information please visit www.harveyvogel.com

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]

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This message has been processed via your triumphgroup.com e-mail
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system · August 30, 2007, 11:23am

Well we don't backflush material but I would think you would do it at
the beginning somewhere... isn't there a trigger that you put in... like
when a certain operation has been completed. So when that operation is
completed it automatically backflushes.

________________________________

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
Of Manasa Reddy
Sent: Thursday, August 30, 2007 11:10 AM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] Accounting Gurus Needed

Then when do you backflush your material?

And how?

M. Manasa Reddy

manasa@... <mailto:manasa%40weldcoa.com>

P: 630-806-2000

F: 630-806-2001

________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Geary, Stephanie
Sent: Thursday, August 30, 2007 9:50 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

Well if you backflush after you post to inventory there is the problem.

________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Manasa Reddy
Sent: Thursday, August 30, 2007 10:29 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

I do the "labor transaction", then the job receipt to inventory, then
close the job, where it asks if I want to backflush. It backflushes and
then closes the job. Then we ship.

I never go back to reopen the job.

We decided to backflush time and material because our guys do NOT clock
into jobs.

M. Manasa Reddy

manasa@... <mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>

P: 630-806-2000

F: 630-806-2001

________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Darren Mann
Sent: Thursday, August 30, 2007 9:15 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

Are you charging anything to those jobs after you close them? all labor
transactions are keyed in prior to you closing the job?

________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Manasa Reddy
Sent: Thursday, August 30, 2007 9:01 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

See there is a reason why I am not a finance person!

I am so confused with this because I close my jobs before we ship. We
buy everything to stock, not to a job. So I still don't understand why
these transactions should happen.

We do average costing. So are these happening because my "average cost"
on the material is an estimate on my job, and then when we replenish our
stock, if the cost re-evaluates the part at a different price that
difference hits my Purchase Price Variance account and or my
Manufacturing variance account?

M. Manasa Reddy

manasa@... <mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>

P: 630-806-2000

F: 630-806-2001

________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Todd Caughey
Sent: Thursday, August 30, 2007 8:29 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

To add ot the other points already nade....this situaiton causes us no
end of grief in determining part profitability for invoiced sales.
Because if these costs get posted to MFG-VAR at job closing, well after
the last shipment, any invoiced based report does not contain the true
costs associated with the shipped parts. The invoice table costs are
frozen at the time of invoicing so never get the MFG-VAR amount. We call
these missing costs "phantom costs" and I've had to create reports that
grab PartTran MFG-VAR transactions and spread them back over the
invoices (Cost / JobQtyShipped * Invoiced Qty) in order to see the real
margin on part sales. Really frustrates our CEO when a large "closed
short" or "late subcontractor invoice" skews a part's profitability
downward months later. Some of this is self-inflicted by not running
jobs out but rather keeping them open for months and shoving short
batches through the processes to th en ship form WIP.

But an awareness of how MFG-VAR will affect any invoice based margin
report is still good to have.
-Todd C.

________________________________
From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf Of Manasa Reddy
Sent: Wednesday, August 29, 2007 4:50 PM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: [Vantage] Accounting Gurus Needed

When we run the Inventory WIP report we see a lot of MFG-VAR
transactions. Now my understanding is that you would be doing job
adjustments for these transactions to happen. However, I have never
done this and I am the only one with access to it. So, obviously I am
missing something, so please what else could cause these transactions.

Also, on top of this, these transactions are marked as Phantom purge WIP
to Variance. That needs to be explained...no idea what this is about.

Any help is appreciated!

TIA,

M. Manasa Reddy
ERP / Inventory & Procurement Manager
Welding Company of America
manasa@... <mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
P: 630-806-2000
F: 630-806-2001

[Non-text portions of this message have been removed]

________________________________
The information contained in this E-mail message and any documents which
may be attached are privileged and confidential, and may be protected
from disclosure.

Please be aware that any use, printing, copying, disclosure or
dissemination of this communication may be subject to legal restriction
or sanction. If you think you have received this message in error,
please reply to the sender.

For more information please visit www.harveyvogel.com

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]

This message has been processed via your triumphgroup.com e-mail
address.

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]

This message has been processed via your triumphgroup.com e-mail
address.

[Non-text portions of this message have been removed]

system · August 30, 2007, 11:47am

Nope, the way I was told to have backflush work (and this is from 2
consultants and tech support) is each operation's labor entry is
backflush except the last op, which would be quantity only on a job and
method.

Then I report quantity on the last op through labor entry, receive the
top assembly and sub assemblies through job receipt to inventory, then
close the job. The act of closing the job relieves my raw material.

Nothing is automatic except Kan Ban (which I found out is not working
correctly in version 8).

M. Manasa Reddy

manasa@...

P: 630-806-2000

F: 630-806-2001

________________________________

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
Of Geary, Stephanie
Sent: Thursday, August 30, 2007 10:22 AM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] Accounting Gurus Needed

Well we don't backflush material but I would think you would do it at
the beginning somewhere... isn't there a trigger that you put in... like
when a certain operation has been completed. So when that operation is
completed it automatically backflushes.

________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Manasa Reddy
Sent: Thursday, August 30, 2007 11:10 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

Then when do you backflush your material?

And how?

M. Manasa Reddy

manasa@... <mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>

P: 630-806-2000

F: 630-806-2001

________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Geary, Stephanie
Sent: Thursday, August 30, 2007 9:50 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

Well if you backflush after you post to inventory there is the problem.

________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Manasa Reddy
Sent: Thursday, August 30, 2007 10:29 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

I do the "labor transaction", then the job receipt to inventory, then
close the job, where it asks if I want to backflush. It backflushes and
then closes the job. Then we ship.

I never go back to reopen the job.

We decided to backflush time and material because our guys do NOT clock
into jobs.

M. Manasa Reddy

manasa@... <mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>

P: 630-806-2000

F: 630-806-2001

________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Darren Mann
Sent: Thursday, August 30, 2007 9:15 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

Are you charging anything to those jobs after you close them? all labor
transactions are keyed in prior to you closing the job?

________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Manasa Reddy
Sent: Thursday, August 30, 2007 9:01 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

See there is a reason why I am not a finance person!

I am so confused with this because I close my jobs before we ship. We
buy everything to stock, not to a job. So I still don't understand why
these transactions should happen.

We do average costing. So are these happening because my "average cost"
on the material is an estimate on my job, and then when we replenish our
stock, if the cost re-evaluates the part at a different price that
difference hits my Purchase Price Variance account and or my
Manufacturing variance account?

M. Manasa Reddy

manasa@... <mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>

P: 630-806-2000

F: 630-806-2001

________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Todd Caughey
Sent: Thursday, August 30, 2007 8:29 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

To add ot the other points already nade....this situaiton causes us no
end of grief in determining part profitability for invoiced sales.
Because if these costs get posted to MFG-VAR at job closing, well after
the last shipment, any invoiced based report does not contain the true
costs associated with the shipped parts. The invoice table costs are
frozen at the time of invoicing so never get the MFG-VAR amount. We call
these missing costs "phantom costs" and I've had to create reports that
grab PartTran MFG-VAR transactions and spread them back over the
invoices (Cost / JobQtyShipped * Invoiced Qty) in order to see the real
margin on part sales. Really frustrates our CEO when a large "closed
short" or "late subcontractor invoice" skews a part's profitability
downward months later. Some of this is self-inflicted by not running
jobs out but rather keeping them open for months and shoving short
batches through the processes to th en ship form WIP.

But an awareness of how MFG-VAR will affect any invoice based margin
report is still good to have.
-Todd C.

________________________________
From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf Of Manasa Reddy
Sent: Wednesday, August 29, 2007 4:50 PM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: [Vantage] Accounting Gurus Needed

When we run the Inventory WIP report we see a lot of MFG-VAR
transactions. Now my understanding is that you would be doing job
adjustments for these transactions to happen. However, I have never
done this and I am the only one with access to it. So, obviously I am
missing something, so please what else could cause these transactions.

Also, on top of this, these transactions are marked as Phantom purge WIP
to Variance. That needs to be explained...no idea what this is about.

Any help is appreciated!

TIA,

M. Manasa Reddy
ERP / Inventory & Procurement Manager
Welding Company of America
manasa@... <mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
P: 630-806-2000
F: 630-806-2001

[Non-text portions of this message have been removed]

________________________________
The information contained in this E-mail message and any documents which
may be attached are privileged and confidential, and may be protected
from disclosure.

Please be aware that any use, printing, copying, disclosure or
dissemination of this communication may be subject to legal restriction
or sanction. If you think you have received this message in error,
please reply to the sender.

For more information please visit www.harveyvogel.com

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]

This message has been processed via your triumphgroup.com e-mail
address.

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]

This message has been processed via your triumphgroup.com e-mail
address.

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]

system · August 30, 2007, 12:52pm

What version are you on... we are on 6.1 and I have labor/burden being
backflushed when the next operation is completed.

________________________________

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
Of Manasa Reddy
Sent: Thursday, August 30, 2007 11:46 AM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] Accounting Gurus Needed

Nope, the way I was told to have backflush work (and this is from 2
consultants and tech support) is each operation's labor entry is
backflush except the last op, which would be quantity only on a job and
method.

Then I report quantity on the last op through labor entry, receive the
top assembly and sub assemblies through job receipt to inventory, then
close the job. The act of closing the job relieves my raw material.

Nothing is automatic except Kan Ban (which I found out is not working
correctly in version 8).

M. Manasa Reddy

manasa@... <mailto:manasa%40weldcoa.com>

P: 630-806-2000

F: 630-806-2001

________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Geary, Stephanie
Sent: Thursday, August 30, 2007 10:22 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

Well we don't backflush material but I would think you would do it at
the beginning somewhere... isn't there a trigger that you put in... like
when a certain operation has been completed. So when that operation is
completed it automatically backflushes.

________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Manasa Reddy
Sent: Thursday, August 30, 2007 11:10 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

Then when do you backflush your material?

And how?

M. Manasa Reddy

manasa@... <mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>

P: 630-806-2000

F: 630-806-2001

________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Geary, Stephanie
Sent: Thursday, August 30, 2007 9:50 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

Well if you backflush after you post to inventory there is the problem.

________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Manasa Reddy
Sent: Thursday, August 30, 2007 10:29 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

I do the "labor transaction", then the job receipt to inventory, then
close the job, where it asks if I want to backflush. It backflushes and
then closes the job. Then we ship.

I never go back to reopen the job.

We decided to backflush time and material because our guys do NOT clock
into jobs.

M. Manasa Reddy

manasa@... <mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>

P: 630-806-2000

F: 630-806-2001

________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Darren Mann
Sent: Thursday, August 30, 2007 9:15 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

Are you charging anything to those jobs after you close them? all labor
transactions are keyed in prior to you closing the job?

________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Manasa Reddy
Sent: Thursday, August 30, 2007 9:01 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

See there is a reason why I am not a finance person!

I am so confused with this because I close my jobs before we ship. We
buy everything to stock, not to a job. So I still don't understand why
these transactions should happen.

We do average costing. So are these happening because my "average cost"
on the material is an estimate on my job, and then when we replenish our
stock, if the cost re-evaluates the part at a different price that
difference hits my Purchase Price Variance account and or my
Manufacturing variance account?

M. Manasa Reddy

manasa@... <mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>

P: 630-806-2000

F: 630-806-2001

________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Todd Caughey
Sent: Thursday, August 30, 2007 8:29 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

To add ot the other points already nade....this situaiton causes us no
end of grief in determining part profitability for invoiced sales.
Because if these costs get posted to MFG-VAR at job closing, well after
the last shipment, any invoiced based report does not contain the true
costs associated with the shipped parts. The invoice table costs are
frozen at the time of invoicing so never get the MFG-VAR amount. We call
these missing costs "phantom costs" and I've had to create reports that
grab PartTran MFG-VAR transactions and spread them back over the
invoices (Cost / JobQtyShipped * Invoiced Qty) in order to see the real
margin on part sales. Really frustrates our CEO when a large "closed
short" or "late subcontractor invoice" skews a part's profitability
downward months later. Some of this is self-inflicted by not running
jobs out but rather keeping them open for months and shoving short
batches through the processes to th en ship form WIP.

But an awareness of how MFG-VAR will affect any invoice based margin
report is still good to have.
-Todd C.

________________________________
From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf Of Manasa Reddy
Sent: Wednesday, August 29, 2007 4:50 PM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: [Vantage] Accounting Gurus Needed

When we run the Inventory WIP report we see a lot of MFG-VAR
transactions. Now my understanding is that you would be doing job
adjustments for these transactions to happen. However, I have never
done this and I am the only one with access to it. So, obviously I am
missing something, so please what else could cause these transactions.

Also, on top of this, these transactions are marked as Phantom purge WIP
to Variance. That needs to be explained...no idea what this is about.

Any help is appreciated!

TIA,

M. Manasa Reddy
ERP / Inventory & Procurement Manager
Welding Company of America
manasa@... <mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
P: 630-806-2000
F: 630-806-2001

[Non-text portions of this message have been removed]

________________________________
The information contained in this E-mail message and any documents which
may be attached are privileged and confidential, and may be protected
from disclosure.

Please be aware that any use, printing, copying, disclosure or
dissemination of this communication may be subject to legal restriction
or sanction. If you think you have received this message in error,
please reply to the sender.

For more information please visit www.harveyvogel.com

[Non-text portions of this message have been removed]

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system · August 30, 2007, 1:01pm

On the part master file there is a box to check for "backflush" I think
that has to be check for the raw material to be backflushed
automatically.

________________________________

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
Of Manasa Reddy
Sent: Thursday, August 30, 2007 11:46 AM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] Accounting Gurus Needed

Nope, the way I was told to have backflush work (and this is from 2
consultants and tech support) is each operation's labor entry is
backflush except the last op, which would be quantity only on a job and
method.

Then I report quantity on the last op through labor entry, receive the
top assembly and sub assemblies through job receipt to inventory, then
close the job. The act of closing the job relieves my raw material.

Nothing is automatic except Kan Ban (which I found out is not working
correctly in version 8).

M. Manasa Reddy

manasa@... <mailto:manasa%40weldcoa.com>

P: 630-806-2000

F: 630-806-2001

________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Geary, Stephanie
Sent: Thursday, August 30, 2007 10:22 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

Well we don't backflush material but I would think you would do it at
the beginning somewhere... isn't there a trigger that you put in... like
when a certain operation has been completed. So when that operation is
completed it automatically backflushes.

________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Manasa Reddy
Sent: Thursday, August 30, 2007 11:10 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

Then when do you backflush your material?

And how?

M. Manasa Reddy

manasa@... <mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>

P: 630-806-2000

F: 630-806-2001

________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Geary, Stephanie
Sent: Thursday, August 30, 2007 9:50 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

Well if you backflush after you post to inventory there is the problem.

________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Manasa Reddy
Sent: Thursday, August 30, 2007 10:29 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

I do the "labor transaction", then the job receipt to inventory, then
close the job, where it asks if I want to backflush. It backflushes and
then closes the job. Then we ship.

I never go back to reopen the job.

We decided to backflush time and material because our guys do NOT clock
into jobs.

M. Manasa Reddy

manasa@... <mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>

P: 630-806-2000

F: 630-806-2001

________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Darren Mann
Sent: Thursday, August 30, 2007 9:15 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

Are you charging anything to those jobs after you close them? all labor
transactions are keyed in prior to you closing the job?

________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Manasa Reddy
Sent: Thursday, August 30, 2007 9:01 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

See there is a reason why I am not a finance person!

I am so confused with this because I close my jobs before we ship. We
buy everything to stock, not to a job. So I still don't understand why
these transactions should happen.

We do average costing. So are these happening because my "average cost"
on the material is an estimate on my job, and then when we replenish our
stock, if the cost re-evaluates the part at a different price that
difference hits my Purchase Price Variance account and or my
Manufacturing variance account?

M. Manasa Reddy

manasa@... <mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>

P: 630-806-2000

F: 630-806-2001

________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Todd Caughey
Sent: Thursday, August 30, 2007 8:29 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

To add ot the other points already nade....this situaiton causes us no
end of grief in determining part profitability for invoiced sales.
Because if these costs get posted to MFG-VAR at job closing, well after
the last shipment, any invoiced based report does not contain the true
costs associated with the shipped parts. The invoice table costs are
frozen at the time of invoicing so never get the MFG-VAR amount. We call
these missing costs "phantom costs" and I've had to create reports that
grab PartTran MFG-VAR transactions and spread them back over the
invoices (Cost / JobQtyShipped * Invoiced Qty) in order to see the real
margin on part sales. Really frustrates our CEO when a large "closed
short" or "late subcontractor invoice" skews a part's profitability
downward months later. Some of this is self-inflicted by not running
jobs out but rather keeping them open for months and shoving short
batches through the processes to th en ship form WIP.

But an awareness of how MFG-VAR will affect any invoice based margin
report is still good to have.
-Todd C.

________________________________
From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf Of Manasa Reddy
Sent: Wednesday, August 29, 2007 4:50 PM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: [Vantage] Accounting Gurus Needed

When we run the Inventory WIP report we see a lot of MFG-VAR
transactions. Now my understanding is that you would be doing job
adjustments for these transactions to happen. However, I have never
done this and I am the only one with access to it. So, obviously I am
missing something, so please what else could cause these transactions.

Also, on top of this, these transactions are marked as Phantom purge WIP
to Variance. That needs to be explained...no idea what this is about.

Any help is appreciated!

TIA,

M. Manasa Reddy
ERP / Inventory & Procurement Manager
Welding Company of America
manasa@... <mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
P: 630-806-2000
F: 630-806-2001

[Non-text portions of this message have been removed]

________________________________
The information contained in this E-mail message and any documents which
may be attached are privileged and confidential, and may be protected
from disclosure.

Please be aware that any use, printing, copying, disclosure or
dissemination of this communication may be subject to legal restriction
or sanction. If you think you have received this message in error,
please reply to the sender.

For more information please visit www.harveyvogel.com

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]

This message has been processed via your triumphgroup.com e-mail
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[Non-text portions of this message have been removed]

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system · August 30, 2007, 1:38pm

You would backflush upon completion and then maybe again when closing.
The costs will catch up. If you close before shipping it will dump the
cost out of WIP to Variance before the shipment takes place.

You can also backflush automatically if you link your materials to
operations and mark them as back flushable. When those operations are
completed , it then backflushed the related materials. This saves having
to Backflush in the Job Closing screen, and keeps your stock levels more
upto date

Gary Parfrey

Dot Net IT Limited, Reg No 4412519

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
Of Manasa Reddy
Sent: 30 August 2007 15:30
To: vantage@yahoogroups.com
Subject: RE: [Vantage] Accounting Gurus Needed

So do this even for backflushing?

M. Manasa Reddy

manasa@... <mailto:manasa%40weldcoa.com>

P: 630-806-2000

F: 630-806-2001

________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Gary Parfrey
Sent: Thursday, August 30, 2007 9:14 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

That's exactly why it happens. You should not close Jobs when using
Average costing before the items are shipped

1) Job costs $500.

2) You then close job.

3) Capture COS WIP purges any remaining costs from job (MFG-VAR of
$500)

4) Job gets shipped, (More than likely at Zero Cost (MFG-CUS) and
100% Margin)

Your Variances are crated between 2 and 3. The following should be
followed

1) Job costs $500.

2) You then complete but not close the job.

3) Job gets shipped, (More than likely at $500 Cost of Sale
(MFG-CUS)and Correct Margin)

4) You then close the job

5) Capture COS WIP purges any remaining costs from job (No or
minimum MFG-VAR because the cost has already gone to COS in item 3)

Gary Parfrey

Dot Net IT Limited, Reg No 4412519

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Manasa Reddy
Sent: 30 August 2007 15:01
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

See there is a reason why I am not a finance person!

I am so confused with this because I close my jobs before we ship. We
buy everything to stock, not to a job. So I still don't understand why
these transactions should happen.

We do average costing. So are these happening because my "average cost"
on the material is an estimate on my job, and then when we replenish our
stock, if the cost re-evaluates the part at a different price that
difference hits my Purchase Price Variance account and or my
Manufacturing variance account?

M. Manasa Reddy

manasa@... <mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>

P: 630-806-2000

F: 630-806-2001

________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Todd Caughey
Sent: Thursday, August 30, 2007 8:29 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

To add ot the other points already nade....this situaiton causes us no
end of grief in determining part profitability for invoiced sales.
Because if these costs get posted to MFG-VAR at job closing, well after
the last shipment, any invoiced based report does not contain the true
costs associated with the shipped parts. The invoice table costs are
frozen at the time of invoicing so never get the MFG-VAR amount. We call
these missing costs "phantom costs" and I've had to create reports that
grab PartTran MFG-VAR transactions and spread them back over the
invoices (Cost / JobQtyShipped * Invoiced Qty) in order to see the real
margin on part sales. Really frustrates our CEO when a large "closed
short" or "late subcontractor invoice" skews a part's profitability
downward months later. Some of this is self-inflicted by not running
jobs out but rather keeping them open for months and shoving short
batches through the processes to th en ship form WIP.

But an awareness of how MFG-VAR will affect any invoice based margin
report is still good to have.
-Todd C.

________________________________
From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com> ] On
Behalf Of Manasa Reddy
Sent: Wednesday, August 29, 2007 4:50 PM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: [Vantage] Accounting Gurus Needed

When we run the Inventory WIP report we see a lot of MFG-VAR
transactions. Now my understanding is that you would be doing job
adjustments for these transactions to happen. However, I have never
done this and I am the only one with access to it. So, obviously I am
missing something, so please what else could cause these transactions.

Also, on top of this, these transactions are marked as Phantom purge WIP
to Variance. That needs to be explained...no idea what this is about.

Any help is appreciated!

TIA,

M. Manasa Reddy
ERP / Inventory & Procurement Manager
Welding Company of America
manasa@... <mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
<mailto:manasa%40weldcoa.com>
P: 630-806-2000
F: 630-806-2001

[Non-text portions of this message have been removed]

________________________________
The information contained in this E-mail message and any documents which
may be attached are privileged and confidential, and may be protected
from disclosure.

Please be aware that any use, printing, copying, disclosure or
dissemination of this communication may be subject to legal restriction
or sanction. If you think you have received this message in error,
please reply to the sender.

For more information please visit www.harveyvogel.com

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]

system · August 30, 2007, 2:00pm

Todd,

Would you mind sharing how you have your reports set up to capture the costs
back to the invoices. This is one of our biggest issues because of our
short lead times.

Josh Inda

----- Original Message ----
From: Gary Parfrey <garyp@...>
To: vantage@yahoogroups.com
Sent: Thursday, August 30, 2007 12:22:31 PM
Subject: RE: [Vantage] Accounting Gurus Needed

You would backflush upon completion and then maybe again when closing.

The costs will catch up. If you close before shipping it will dump the

cost out of WIP to Variance before the shipment takes place.

You can also backflush automatically if you link your materials to

operations and mark them as back flushable. When those operations are

completed , it then backflushed the related materials. This saves having

to Backflush in the Job Closing screen, and keeps your stock levels more

upto date

Gary Parfrey

Dot Net IT Limited, Reg No 4412519

From: vantage@yahoogroups .com [mailto:vantage@yahoogroups .com] On Behalf

Of Manasa Reddy

Sent: 30 August 2007 15:30

To: vantage@yahoogroups .com

Subject: RE: [Vantage] Accounting Gurus Needed

So do this even for backflushing?

M. Manasa Reddy

manasa@weldcoa. com <mailto:manasa% 40weldcoa. com>

P: 630-806-2000

F: 630-806-2001

____________ _________ _________ __

From: vantage@yahoogroups .com <mailto:vantage% 40yahoogroups. com>

[mailto:vantage@yahoogroups .com <mailto:vantage% 40yahoogroups. com> ] On

Behalf

Of Gary Parfrey

Sent: Thursday, August 30, 2007 9:14 AM

To: vantage@yahoogroups .com <mailto:vantage% 40yahoogroups. com>

Subject: RE: [Vantage] Accounting Gurus Needed

That's exactly why it happens. You should not close Jobs when using

Average costing before the items are shipped

1) Job costs $500.

2) You then close job.

3) Capture COS WIP purges any remaining costs from job (MFG-VAR of

$500)

4) Job gets shipped, (More than likely at Zero Cost (MFG-CUS) and

100% Margin)

Your Variances are crated between 2 and 3. The following should be

followed

1) Job costs $500.

2) You then complete but not close the job.

3) Job gets shipped, (More than likely at $500 Cost of Sale

(MFG-CUS)and Correct Margin)

4) You then close the job

5) Capture COS WIP purges any remaining costs from job (No or

minimum MFG-VAR because the cost has already gone to COS in item 3)

Gary Parfrey

Dot Net IT Limited, Reg No 4412519

From: vantage@yahoogroups .com <mailto:vantage% 40yahoogroups. com>

<mailto:vantage% 40yahoogroups. com>

[mailto:vantage@yahoogroups .com <mailto:vantage% 40yahoogroups. com>

<mailto:vantage% 40yahoogroups. com> ] On

Behalf

Of Manasa Reddy

Sent: 30 August 2007 15:01

To: vantage@yahoogroups .com <mailto:vantage% 40yahoogroups. com>

<mailto:vantage% 40yahoogroups. com>

Subject: RE: [Vantage] Accounting Gurus Needed

See there is a reason why I am not a finance person!

I am so confused with this because I close my jobs before we ship. We

buy everything to stock, not to a job. So I still don't understand why

these transactions should happen.

We do average costing. So are these happening because my "average cost"

on the material is an estimate on my job, and then when we replenish our

stock, if the cost re-evaluates the part at a different price that

difference hits my Purchase Price Variance account and or my

Manufacturing variance account?

M. Manasa Reddy

manasa@weldcoa. com <mailto:manasa% 40weldcoa. com>

<mailto:manasa% 40weldcoa. com>

<mailto:manasa% 40weldcoa. com>

P: 630-806-2000

F: 630-806-2001

____________ _________ _________ __

From: vantage@yahoogroups .com <mailto:vantage% 40yahoogroups. com>

<mailto:vantage% 40yahoogroups. com>

<mailto:vantage% 40yahoogroups. com>

[mailto:vantage@yahoogroups .com <mailto:vantage% 40yahoogroups. com>

<mailto:vantage% 40yahoogroups. com>

<mailto:vantage% 40yahoogroups. com> ] On

Behalf

Of Todd Caughey

Sent: Thursday, August 30, 2007 8:29 AM

To: vantage@yahoogroups .com <mailto:vantage% 40yahoogroups. com>

<mailto:vantage% 40yahoogroups. com>

<mailto:vantage% 40yahoogroups. com>

Subject: RE: [Vantage] Accounting Gurus Needed

To add ot the other points already nade....this situaiton causes us no

end of grief in determining part profitability for invoiced sales.

Because if these costs get posted to MFG-VAR at job closing, well after

the last shipment, any invoiced based report does not contain the true

costs associated with the shipped parts. The invoice table costs are

frozen at the time of invoicing so never get the MFG-VAR amount. We call

these missing costs "phantom costs" and I've had to create reports that

grab PartTran MFG-VAR transactions and spread them back over the

invoices (Cost / JobQtyShipped * Invoiced Qty) in order to see the real

margin on part sales. Really frustrates our CEO when a large "closed

short" or "late subcontractor invoice" skews a part's profitability

downward months later. Some of this is self-inflicted by not running

jobs out but rather keeping them open for months and shoving short

batches through the processes to th en ship form WIP.

But an awareness of how MFG-VAR will affect any invoice based margin

report is still good to have.

-Todd C.

____________ _________ _________ __

From: vantage@yahoogroups .com <mailto:vantage% 40yahoogroups. com>

<mailto:vantage% 40yahoogroups. com>

<mailto:vantage% 40yahoogroups. com>

<mailto:vantage% 40yahoogroups. com>

[mailto:vantage@yahoogroups .com <mailto:vantage% 40yahoogroups. com>

<mailto:vantage% 40yahoogroups. com>

<mailto:vantage% 40yahoogroups. com>

<mailto:vantage% 40yahoogroups. com> ] On

Behalf Of Manasa Reddy

Sent: Wednesday, August 29, 2007 4:50 PM

To: vantage@yahoogroups .com <mailto:vantage% 40yahoogroups. com>

<mailto:vantage% 40yahoogroups. com>

<mailto:vantage% 40yahoogroups. com>

<mailto:vantage% 40yahoogroups. com>

Subject: [Vantage] Accounting Gurus Needed

When we run the Inventory WIP report we see a lot of MFG-VAR

transactions. Now my understanding is that you would be doing job

adjustments for these transactions to happen. However, I have never

done this and I am the only one with access to it. So, obviously I am

missing something, so please what else could cause these transactions.

Also, on top of this, these transactions are marked as Phantom purge WIP

to Variance. That needs to be explained... no idea what this is about.

Any help is appreciated!

TIA,

M. Manasa Reddy

ERP / Inventory & Procurement Manager

Welding Company of America

manasa@weldcoa. com <mailto:manasa% 40weldcoa. com>

<mailto:manasa% 40weldcoa. com>

<mailto:manasa% 40weldcoa. com>

<mailto:manasa% 40weldcoa. com>

<mailto:manasa% 40weldcoa. com>

P: 630-806-2000

F: 630-806-2001

[Non-text portions of this message have been removed]

____________ _________ _________ __

The information contained in this E-mail message and any documents which

may be attached are privileged and confidential, and may be protected

from disclosure.

Please be aware that any use, printing, copying, disclosure or

dissemination of this communication may be subject to legal restriction

or sanction. If you think you have received this message in error,

please reply to the sender.

For more information please visit www.harveyvogel. com

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]

[Non-text portions of this message have been removed]







____________________________________________________________________________________
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[Non-text portions of this message have been removed]

Topic		Replies	Views
MFG-VAR Transactions Yahoo Archive	4	2254	May 23, 2003
Phantom Purge WIP to COS Yahoo Archive	16	3358	November 15, 2007
Phantom Purge WIP to Variance Yahoo Archive	3	8552	May 14, 2015
MFG-VAR on closed jobs Yahoo Archive	11	1337	September 7, 2001
V 6.1, Costs hungup in WIP Yahoo Archive	3	366	May 6, 2005

Accounting Gurus Needed

Related Topics