Our Variances have more to do with timing issues. When the DMR is answered and how is where most of our Variance are coming from. We are working on those issues but for an accuate report to measure how we are doing by part number for future quotes the variances need to be added into the Gross Margin Report.
"Cameron A. Janish" <cameron@...> wrote: Unfortunately I have to ask the question. Is anyone analyzing what the
variances are. This is very important because it can highlight problems
within you system or you business model. If the variances are do
differences in the cost of raw materials you need to look at why that
happens. You move raw materials to WIP and one cost and then they move to
COG at another leaving a variance.
Or if they are labor related. If they are quantity related, or whatever the
reason is. Once you have determined what is causing the variance then you
should take an action to adjust the process to reduce or eliminate the
variance. If you just take the variance to COG or another cost account you
are either hiding you actual cost--taking it or eliminating it.
If the variance is a result of the costing methodology you are using then
you need to see if that costing methodology is valid. For example, if you
use standard cost and you did not update you standards at the beginning of
your fiscal year. This would not reflect a change in raw materials meaning
your standards are inaccurate. If you are using standard costing, updated
your standards at year end, and they continue to cause a variance you need
to look at the size of the variance. If the variance is of an immaterial
nature that is to be expected, but if the variance is large and fluctuates
considerably then it is possible you should not be using standard costing
because the raw materials are too volatile for this type of costing.
Anyway you get the idea I will not bore you with all the rationale for every
situation, but this is an issue that should be addressed.
Cameron A. Janish
Misha1 cameron@...
Toll Free: 866-464-7421
Office: 708-445-7509
Cell: 630-712-9520
Office Fax: 630-893-1307
Direct Fax: 443-638-0489
-----Original Message-----
From: sageary25 [mailto:sageary25@...]
Sent: Friday, January 18, 2002 09:00 AM
To: vantage@yahoogroups.com
Subject: [Vantage] Re: Sales Vs Job Cost report
Do you add the manufacturing variances to the gross margin report?
We have just started adding those cost to the report with the help of
access to get a more accurate account of cost of goods sold.
"Cameron A. Janish" <cameron@...> wrote: Unfortunately I have to ask the question. Is anyone analyzing what the
variances are. This is very important because it can highlight problems
within you system or you business model. If the variances are do
differences in the cost of raw materials you need to look at why that
happens. You move raw materials to WIP and one cost and then they move to
COG at another leaving a variance.
Or if they are labor related. If they are quantity related, or whatever the
reason is. Once you have determined what is causing the variance then you
should take an action to adjust the process to reduce or eliminate the
variance. If you just take the variance to COG or another cost account you
are either hiding you actual cost--taking it or eliminating it.
If the variance is a result of the costing methodology you are using then
you need to see if that costing methodology is valid. For example, if you
use standard cost and you did not update you standards at the beginning of
your fiscal year. This would not reflect a change in raw materials meaning
your standards are inaccurate. If you are using standard costing, updated
your standards at year end, and they continue to cause a variance you need
to look at the size of the variance. If the variance is of an immaterial
nature that is to be expected, but if the variance is large and fluctuates
considerably then it is possible you should not be using standard costing
because the raw materials are too volatile for this type of costing.
Anyway you get the idea I will not bore you with all the rationale for every
situation, but this is an issue that should be addressed.
Cameron A. Janish
Misha1 cameron@...
Toll Free: 866-464-7421
Office: 708-445-7509
Cell: 630-712-9520
Office Fax: 630-893-1307
Direct Fax: 443-638-0489
-----Original Message-----
From: sageary25 [mailto:sageary25@...]
Sent: Friday, January 18, 2002 09:00 AM
To: vantage@yahoogroups.com
Subject: [Vantage] Re: Sales Vs Job Cost report
Do you add the manufacturing variances to the gross margin report?
We have just started adding those cost to the report with the help of
access to get a more accurate account of cost of goods sold.
--- In vantage@y..., Tony Meschini <tmeschini@c...> wrote:
> We do the same, it's a beneficial process.
>
> -----Original Message-----
> From: Gail Grillo [mailto:ggrillo@a...]
> Sent: Monday, January 14, 2002 9:23 AM
> To: vantage@y...
> Subject: RE: [Vantage] Sales Vs Job Cost report
>
>
> We export Sales Gross Margin Report to ASCII and then into Excel,
and
> analyze our little hearts out.
>
> Gail M. Grillo
> Manager, Corporate Administration
> Allegheny Bradford Corporation
> (814) 362-2593 x228
>
> -----Original Message-----
> From: Wendy Bowen (Pursche) [mailto:wpursche@s...]
> Sent: Monday, January 14, 2002 10:17 AM
> To: vantage@y...
> Subject: [Vantage] Sales Vs Job Cost report
>
>
> Does anyone have a Sales vs Job Cost report for my sales rep? I
need
> the report to show sales via INVOICES, NOT ORDERS. I checked the
files
> on yahoo, but didn't find anything that fit the bill. It could be
> crystal or RB.
>
> I started to create this report myself, but realized what a pain in
the
> "yahoo" it's going to be and thought I'd ask you guys first.
>
> Thanks!
>
> Wendy Bowen
> Network Administrator
> Schmald Tool & Die, Inc.
> (810) 743-1600 ext.323
> wpursche@s...
>
>
> [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:
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>
>
>
> 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
>
> Your use of Yahoo! Groups is subject to
http://docs.yahoo.com/info/terms/
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
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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
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