Accounting Gurus Needed

system · August 30, 2007, 2:15pm

We are on Vista 8.0, and yes we have all of our parts marked as
backflushed in part maintenance.

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 11:58 AM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] Accounting Gurus Needed

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%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Manasa Reddy
Sent: Thursday, August 30, 2007 11:46 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.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>
<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 10:22 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.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%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 11:10 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.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>
<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>
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<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>
<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>
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<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>
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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>
<mailto:manasa%40weldcoa.com>

P: 630-806-2000

F: 630-806-2001

________________________________

From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
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<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>
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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>
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<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>
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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>
<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>
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<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>
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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>
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<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>
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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>
<mailto:manasa%40weldcoa.com>
P: 630-806-2000
F: 630-806-2001

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system · August 30, 2007, 2:18pm

Yes we do have all materials linked to operations. And actually I think
I noticed the system doing this automatically if I don't specify an op,
it links automatically to whatever the first op is in the list.

Also, like I mentioned before, our guys don't clock onto jobs or
"complete" operations. I just create a labor transaction on the last op
for the completed quantity.

Ok I am going to try this on my jobs we are shipping out today. I'll
let you guys know what happens tomorrow.

Thanks to everyone who responded, it did help!

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 12:23 PM
To: vantage@yahoogroups.com
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%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Manasa Reddy
Sent: 30 August 2007 15:30
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

So do this even for backflushing?

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 Gary Parfrey
Sent: Thursday, August 30, 2007 9:14 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.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%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.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>
<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>
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<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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system · August 30, 2007, 2:26pm

If you close the job before running the inventory/wip it can't assign
the cost the mfg-cus transaction. This then creates the mfg-var that you
are seeing. If you run inventory/wip then close the job you should be
okay.

Jim

________________________________

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
On Behalf Of Manasa Reddy
Sent: Thursday, August 30, 2007 1:17 PM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] Accounting Gurus Needed

Yes we do have all materials linked to operations. And actually
I think
I noticed the system doing this automatically if I don't specify
an op,
it links automatically to whatever the first op is in the list.

Also, like I mentioned before, our guys don't clock onto jobs or
"complete" operations. I just create a labor transaction on the
last op
for the completed quantity.

Ok I am going to try this on my jobs we are shipping out today.
I'll
let you guys know what happens tomorrow.

Thanks to everyone who responded, it did help!

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 12:23 PM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
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%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 15:30
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

So do this even for backflushing?

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 Gary Parfrey
Sent: Thursday, August 30, 2007 9:14 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.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%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: 30 August 2007 15:01
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]

[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, 2:33pm

Nope I don't believe this to be true. At least not for us. We ship
from manufacturing all the time and close the work order as soon as we
can and our mfg-cus transaction most of the time is correct ... unless
something else occurs.

________________________________

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
Of Jim Frice
Sent: Thursday, August 30, 2007 2:28 PM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] Accounting Gurus Needed

If you close the job before running the inventory/wip it can't assign
the cost the mfg-cus transaction. This then creates the mfg-var that you
are seeing. If you run inventory/wip then close the job you should be
okay.

Jim

________________________________

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 1:17 PM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

Yes we do have all materials linked to operations. And actually
I think
I noticed the system doing this automatically if I don't specify
an op,
it links automatically to whatever the first op is in the list.

Also, like I mentioned before, our guys don't clock onto jobs or
"complete" operations. I just create a labor transaction on the
last op
for the completed quantity.

Ok I am going to try this on my jobs we are shipping out today.
I'll
let you guys know what happens tomorrow.

Thanks to everyone who responded, it did help!

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 Gary Parfrey
Sent: Thursday, August 30, 2007 12:23 PM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
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%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: 30 August 2007 15:30
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

So do this even for backflushing?

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 Gary Parfrey
Sent: Thursday, August 30, 2007 9:14 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

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%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: 30 August 2007 15:01
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]

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

system · August 30, 2007, 6:11pm

The system SHOWS them linked to the first op if you do not specifically link
them but they are not ACTUALLY linked. Look at the related operation value
for the material and it will still show 0 and therefore not backflush.

John Walter |Â National IS ManagerÂ | Hufcor Pty Ltd
7 Trade Park Drive, Tullamarine Vic 3043
Phone +61 3 9330 3733 | Fax +61 3 9338 9015
Email john.w@...
www.hufcor.com.au

-----Original Message-----
From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of
Manasa Reddy
Sent: Friday, 31 August 2007 4:17 AM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] Accounting Gurus Needed

Yes we do have all materials linked to operations. And actually I think
I noticed the system doing this automatically if I don't specify an op,
it links automatically to whatever the first op is in the list.

Also, like I mentioned before, our guys don't clock onto jobs or
"complete" operations. I just create a labor transaction on the last op
for the completed quantity.

Ok I am going to try this on my jobs we are shipping out today. I'll
let you guys know what happens tomorrow.

Thanks to everyone who responded, it did help!

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 12:23 PM
To: vantage@yahoogroups.com
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%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Manasa Reddy
Sent: 30 August 2007 15:30
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

So do this even for backflushing?

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 Gary Parfrey
Sent: Thursday, August 30, 2007 9:14 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.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%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.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>
<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]

[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]

Useful links for the Yahoo!Groups Vantage Board are: ( Note: You must have
already linked your email address to a yahoo id to enable access. )
(1) To access the Files Section of our Yahoo!Group for Report Builder and
Crystal Reports and other 'goodies', please goto:
http://groups.yahoo.com/group/vantage/files/.
(2) To search through old msg's goto:
http://groups.yahoo.com/group/vantage/messages
(3) To view links to Vendors that provide Vantage services goto:
http://groups.yahoo.com/group/vantage/links
Yahoo! Groups Links

system · August 30, 2007, 8:49pm

Set all your other ops to backflush, these will automatically complete
when you post the last op 'Quantity Only' and then those operations will
backflush the related materials.

They don't backflush if they are not linked and are defaulted to the
first op

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 19:17
To: vantage@yahoogroups.com
Subject: RE: [Vantage] Accounting Gurus Needed

Yes we do have all materials linked to operations. And actually I think
I noticed the system doing this automatically if I don't specify an op,
it links automatically to whatever the first op is in the list.

Also, like I mentioned before, our guys don't clock onto jobs or
"complete" operations. I just create a labor transaction on the last op
for the completed quantity.

Ok I am going to try this on my jobs we are shipping out today. I'll
let you guys know what happens tomorrow.

Thanks to everyone who responded, it did help!

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 12:23 PM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
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%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 15:30
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Subject: RE: [Vantage] Accounting Gurus Needed

So do this even for backflushing?

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 Gary Parfrey
Sent: Thursday, August 30, 2007 9:14 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.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%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: 30 August 2007 15:01
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]

[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 · September 6, 2007, 6:55pm

Manasa, This may sound a bit elementary, but have you reviewed the Jobs themselves in Job Tracker to see if the production qty, wip should be 0, shipped qty and or received to stock all equal each other? sometimes variances are created if these numbers don't all jive.

----- Original Message ----
From: Chris Robisch <bluewine@...>
To: vantage@yahoogroups.com
Sent: Wednesday, August 29, 2007 3:44:54 PM
Subject: Re: [Vantage] Accounting Gurus Needed

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

----- Original Message -----
From: "Manasa Reddy" <manasa@weldcoa. com>
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@weldcoa. com
P: 630-806-2000
F: 630-806-2001

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

Useful links for the Yahoo!Groups Vantage Board are: ( Note: You must have already linked your email address to a yahoo id to enable access. )
(1) To access the Files Section of our Yahoo!Group for Report Builder and Crystal Reports and other 'goodies', please goto: http://groups. yahoo.com/ group/vantage/ files/.
(2) To search through old msg's goto: http://groups. yahoo.com/ group/vantage/ messages
(3) To view links to Vendors that provide Vantage services goto: http://groups. yahoo.com/ group/vantage/ links
Yahoo! Groups Links

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

____________________________________________________________________________________
Luggage? GPS? Comic books?
Check out fitting gifts for grads at Yahoo! Search
http://search.yahoo.com/search?fr=oni_on_mail&p=graduation+gifts&cs=bz

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

system · September 7, 2007, 8:50am

I'm starting to look at that as well!

Thanks!

M. Manasa Reddy

manasa@...

P: 630-806-2000

F: 630-806-2001

________________________________

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
Of RSN
Sent: Thursday, September 06, 2007 5:53 PM
To: vantage@yahoogroups.com
Subject: Re: [Vantage] Accounting Gurus Needed

Manasa, This may sound a bit elementary, but have you reviewed the Jobs
themselves in Job Tracker to see if the production qty, wip should be 0,
shipped qty and or received to stock all equal each other? sometimes
variances are created if these numbers don't all jive.

----- Original Message ----
From: Chris Robisch <bluewine@... <mailto:bluewine%40san.rr.com>

>

To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
Sent: Wednesday, August 29, 2007 3:44:54 PM
Subject: Re: [Vantage] Accounting Gurus Needed

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

----- Original Message -----
From: "Manasa Reddy" <manasa@weldcoa. com>
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@weldcoa. com
P: 630-806-2000
F: 630-806-2001

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

Useful links for the Yahoo!Groups Vantage Board are: ( Note: You must
have already linked your email address to a yahoo id to enable access. )
(1) To access the Files Section of our Yahoo!Group for Report Builder
and Crystal Reports and other 'goodies', please goto: http://groups.
yahoo.com/ group/vantage/ files/.
(2) To search through old msg's goto: http://groups. yahoo.com/
group/vantage/ messages
(3) To view links to Vendors that provide Vantage services goto:
http://groups. yahoo.com/ group/vantage/ links
Yahoo! Groups Links

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

__________________________________________________________
Luggage? GPS? Comic books?
Check out fitting gifts for grads at Yahoo! Search
http://search.yahoo.com/search?fr=oni_on_mail&p=graduation+gifts&cs=bz
<http://search.yahoo.com/search?fr=oni_on_mail&p=graduation+gifts&cs=bz>

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

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

system · September 13, 2007, 10:22am

Are the materials linked to related operations and flagged as backflush?
Does the last operation have material linked to it? You could also flag
the job complete and backflush at the same time. Then do the receipt
from manufacturing and then close the job.

Jim

________________________________

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
On Behalf Of Manasa Reddy
Sent: Thursday, August 30, 2007 10:46 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]

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system · September 13, 2007, 10:22am

This is done with Report Builder in 6.1. If that is of interest I can send an example report in a PRL file. Otherwise the basic premise is to link the invoice lines to JobProd (everything here ships from WIP) and then link to part tran with a calculated field to link to only MFG-VAR transaction types (left outer and ignore unknowns). With the PartTran record available the value on it (being for qty 1 for these) can be divided by the total qty shipped from the job (ignore unshipped left over parts) to get a pre piece "phantom cost". Each invoice's qty shipped gets a "share" of the left over costs multiplying the shipped qty by the phantom cost per piece. Add this to whatever cost figures you are using for invoice based margin reports and you get a more accurate reflection because it now includes those MFG-VAR costs.
-Todd C.

________________________________
From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of Josh Inda
Sent: Thursday, August 30, 2007 12:59 PM
To: vantage@yahoogroups.com
Subject: Re: [Vantage] Accounting Gurus Needed

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@...<mailto:garyp%40dotnetit.co.uk>>
To: vantage@yahoogroups.com<mailto:vantage%40yahoogroups.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]

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________________________________
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 · September 13, 2007, 10:23am

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@yahoogroups.com] On Behalf
Of Manasa Reddy
Sent: Thursday, 30 August 2007 7:50 AM
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]

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

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