Change from Last/Avg Cost to Standard Costing Method

Yahoo Archive
1
Yes, the system will not allow you to change costing methods when there are quantities on hand. We changed our costing method last year from Standard to Average. We did it at the same time we were performing a physical inventory. We zeroed out the inventory through the physical inventory process, then mass changed the costing method, then reloaded the balances through the physical inventory process. Overall it went smoothly.
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Diane Williams
CFO/VP of Finance
Companion Systems
801-294-3505

--- On Tue, 11/25/08, kayd.indaco <kay.d@...> wrote:

From: kayd.indaco <kay.d@...>
Subject: [Vantage] Change from Last/Avg Cost to Standard Costing Method
To: vantage@yahoogroups.com
Date: Tuesday, November 25, 2008, 4:26 PM






My company believes we probably used the wrong costing method when we
went live with Vantage last year. We think we should be using standard
cost; however, we don't know what issues we might have by switching
from last/avg cost. We also don't know all of the steps to make this
happen. We have heard that we must zero out all quantities before
changing the costing method. Does anyone know if this is correct?

Any help/suggestions will be greatly appreciated.


















[Non-text portions of this message have been removed]
2
My company believes we probably used the wrong costing method when we
went live with Vantage last year. We think we should be using standard
cost; however, we don't know what issues we might have by switching
from last/avg cost. We also don't know all of the steps to make this
happen. We have heard that we must zero out all quantities before
changing the costing method. Does anyone know if this is correct?

Any help/suggestions will be greatly appreciated.
3
We are thinking about going the other way. Switching from Standard to
Average. What are the pro's and Con's from your point of view for
doing this.(or better question why are you switching from Average to
Standard)

We are also not sure how to make this change in Vantage. Any help
would also be appreciated




--- In vantage@yahoogroups.com, "kayd.indaco" <kay.d@...> wrote:
>
> My company believes we probably used the wrong costing method when
we
> went live with Vantage last year. We think we should be using
standard
> cost; however, we don't know what issues we might have by switching
> from last/avg cost. We also don't know all of the steps to make this
> happen. We have heard that we must zero out all quantities before
> changing the costing method. Does anyone know if this is correct?
>
> Any help/suggestions will be greatly appreciated.
>
4
Vantage 8.03.406

We are in the process of moving from Standard to Average. Our COO, who
also has a strong background in finance, attended a couple of sessions
at Perspectives and also had a couple of conversations with other users
regarding this topic. I do know we were dealing with to many variances
and our CFO was beginning to scream pretty loud. I am not strong on
the finance side so I will leave those decisions to the powers to be.

But, to make something like this happen you will need to adjust your
part quantity to zero (0) before you can change the Cost Method. We
ran our Stock Status Report for only those items with on-hand
quantities. Open the Part Maintenance and Quantity Adjustment screens
and copy/paste your part number between the two. Zero out your on-hand
and then go to Part Maintenance to change the Cost Method (be sure to
do this from the main 'Part' sheet). You will be prompted if you would
like to update all warehouses (or something to that fact). Click 'yes'
and save. Adjust your quantity back accordingly.

Jeff
--- In vantage@yahoogroups.com, "kayd.indaco" <kay.d@...> wrote:
>
> My company believes we probably used the wrong costing method when we
> went live with Vantage last year. We think we should be using
standard
> cost; however, we don't know what issues we might have by switching
> from last/avg cost. We also don't know all of the steps to make this
> happen. We have heard that we must zero out all quantities before
> changing the costing method. Does anyone know if this is correct?
>
> Any help/suggestions will be greatly appreciated.
>
5
Excellent response Jeff.

The only thing I would add if you consider going from ave or last to std is that, once you switch to std, your last and ave will always be your std (not having anything to do with actuals).

Kind of a bonehead paradigm on Epicor's part (as it chucks a perfectly good, simple way of have simple gross level non-financial impacting variance tools that can help you SET new standards over time) - but it is what it is.

Other systems I've used that claim to maintain std last & ave simultaneously actually do. Even when using std, ave and last are based upon FIFO actuals. To me, it seems Epicor actually complicated the applications by doing it the odd way they have.

Rob





--- On Tue, 11/25/08, jplehr <jlehr@...> wrote:
From: jplehr <jlehr@...>
Subject: [Vantage] Re: Change from Last/Avg Cost to Standard Costing Method
To: vantage@yahoogroups.com
Date: Tuesday, November 25, 2008, 12:42 PM











Vantage 8.03.406



We are in the process of moving from Standard to Average. Our COO, who

also has a strong background in finance, attended a couple of sessions

at Perspectives and also had a couple of conversations with other users

regarding this topic. I do know we were dealing with to many variances

and our CFO was beginning to scream pretty loud. I am not strong on

the finance side so I will leave those decisions to the powers to be.



But, to make something like this happen you will need to adjust your

part quantity to zero (0) before you can change the Cost Method. We

ran our Stock Status Report for only those items with on-hand

quantities. Open the Part Maintenance and Quantity Adjustment screens

and copy/paste your part number between the two. Zero out your on-hand

and then go to Part Maintenance to change the Cost Method (be sure to

do this from the main 'Part' sheet). You will be prompted if you would

like to update all warehouses (or something to that fact). Click 'yes'

and save. Adjust your quantity back accordingly.



Jeff

--- In vantage@yahoogroups .com, "kayd.indaco" <kay.d@...> wrote:

>

> My company believes we probably used the wrong costing method when we

> went live with Vantage last year. We think we should be using

standard

> cost; however, we don't know what issues we might have by switching

> from last/avg cost. We also don't know all of the steps to make this

> happen. We have heard that we must zero out all quantities before

> changing the costing method. Does anyone know if this is correct?

>

> Any help/suggestions will be greatly appreciated.

>