For all (well almost all) of our parts we use average cost. And pretty much anything manufactured is built directly on the job and shipped directly to the customer, so that just uses the job cost anyways. We have very little in stock because with custom engineered equipment, a lot of parts are unique the job, and those that aren’t are too hard to forecast anyways, so we just make them when we need them. Because we have everything set up this way, pretty much every manufactured parts has a zero in the cost tables for everything.
That being said, If I want to do a cost rollup for all manufactured parts and post them for reference, will the standard cost that is in then posted affect anything accounting wise? I’m thinking no, but am a little hesitant because I know that everything is related when it comes to costing and accounting. I can’t imagine that it can be worse than the 0’s now, but I figured I should ask before I go all cowboy on our costing.
You can roll an average cost just for this purpose. When you roll the cost
select “use standard cost” and it will update the standard cost table on
the part plant record, but only if you post the cost roll. Since you are
average cost method on your parts it wont affect that cost
If you want to just roll the cost to see the standard you can always then
delete the cost record group you created without posting the results as well
This won’t work in our case because the manufactured parts have never hit inventory, and as such have no cost in the system. (we do very large jobs where everything is made on that one job and then shipped from the job to the customer. So none of the parts within the job touch inventory) I might do this for the purchased parts though.
I suppose I could just do the cost roll without posting and refer to that cost set in my BAQ’s and dashboards and get the same thing. It’s too tedious to look at each individual part cost in part tracker anyways, so if they don’t show up there it probably wouldn’t be an issue. However, If someone wants to tweak the cost for the the standard for a valid reason, they won’t be able to use cost adjustment to do that. But If I don’t post the costing, then I don’t have a bunch of unnecessary cost adjustments in the part tran. Pros and Cons both ways. Lots of things to think about.