Switching costing Method

Yahoo Archive
1
Mike
Can you please give me the steps involved in vantage 6.10.
Thank you
ZR

--- In vantage@yahoogroups.com, "Mike Lowe" <MLowe@...> wrote:
>
> For 6.1 you still can't update the costing method with an onhand
> quantity of parts. So you qty adjust the parts to zero, change costing
> method from STD to Last and then qty adjust the parts back.
>
>
>
> Mike
>
>
>
>
>
> From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
> Of chllee72
> Sent: Wednesday, January 20, 2010 10:05 AM
> To: vantage@yahoogroups.com
> Subject: [Vantage] Re: Switching costing Method
>
>
>
>
>
> I remember that we purchased one program thru Epicor to update Standard
> Cost.
> The program did export from excel to Vantage.
>
> --- In vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com> ,
> "zuhaib_akhtar" <zuhaib_akhtar@> wrote:
> >
> > > > Gerry
> > I am sorry I have not mentioned before I am using Vantage 6.10.
> > i was not able to see part tab there.
> > Actually I want to switch to last cost whatever it was.
> > thank you
> > ZR
> >
> >
> > --- In vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com> ,
> "batlou" <brian.chandler@> wrote:
> > >
> > > We switched from Average to Standard Cost. See below for the Project
> Plan. These task were assigned to various people in our Organization and
> took about 4 hours to complete.
> > >
> > > Each report that was created was attached to the task for review at
> a later date.
> > >
> > > Good Luck.
> > >
> > > 1. Establish Reason Code
> > > 2. Verify Standard Cost
> > > 3. Print Part Cost Variance Dashboard
> > > 4. Write off Scrap and First Articles
> > > 5. Cease all Transactions in Vantage
> > > 6. Print Part Cost Variance
> > > 7. Backup Vantage
> > > 8. Run Stock Status Report
> > > A. Export to Excel so P/N's can be cut and pasted during QTY
> adjustment process.
> > > B. This document should be used later to check against the final
> stock status report.
> > > 9. Run COGS/WIP Report
> > > 10. Divide Stock Status up between Users
> > > A. Take out finished good inventory that is on-hand.
> > > B. Highlight stock status as each row is adjusted.
> > > C. Take out all components of that finished goods using the quantity
> adjust. Highlight stock status as each row is adjusted.
> > > D. Use the Standard cost reason code during adjustments.
> > > 11. Run Stock Status Report
> > > A. Verify all stock has been removed from Vantage.
> > > 12. Run Conversion Script (SQL Code)
> > > A. Convert Average to Standard Cost
> > > B. Turn off Track Lots on all parts
> > > C. Set Standard Cost as default for all new parts.
> > > 13. Sample 10 Parts
> > > A. Add Qty's back to Vantage
> > > B. Verify Part Entry
> > > C. Verify Qty's
> > > D. Verify Lots
> > > E. Verify Cost Type
> > > F. Materials Manager will confirm parts and Go-No Go
> > > 14. Return Qty's back to Inventory
> > > 15. Run Stock Status
> > >
> > >
> > > --- In vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com> ,
> "Gerry Loranger" <gloranger@> wrote:
> > > >
> > > > Sure, just go into the Part Master and change it in the Part tab.
> I'm
> > > > guessing you have inventory on hand and it's disabled. If so, you
> will have
> > > > to zero it out to change the costing method and then re-add it
> after you've
> > > > made the change.
> > > >
> > > >
> > > >
> > > > Gerry
> > > >
> > > >
> > > >
> > > > From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
> [mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com> ] On
> Behalf Of
> > > > zuhaib_akhtar
> > > > Sent: Wednesday, January 20, 2010 9:02 AM
> > > > To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
> > > > Subject: [Vantage] Switching costing Method
> > > >
> > > >
> > > >
> > > >
> > > >
> > > > Is there any way to switch costing method????
> > > > Please reply.
> > > > thank you
> > > > Z R
> > > >
> > > >
> > > >
> > > >
> > > >
> > > > [Non-text portions of this message have been removed]
> > > >
> > >
> >
>
>
>
>
> ______________________________________________________________________
> This email has been scanned by the MessageLabs Email Security System.
> For more information please visit http://www.messagelabs.com/email
> ______________________________________________________________________
>
>
>
> [Non-text portions of this message have been removed]
>
2
Is there any way to switch costing method????
Please reply.
thank you
Z R
3
Sure, just go into the Part Master and change it in the Part tab. I'm
guessing you have inventory on hand and it's disabled. If so, you will have
to zero it out to change the costing method and then re-add it after you've
made the change.



Gerry



From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of
zuhaib_akhtar
Sent: Wednesday, January 20, 2010 9:02 AM
To: vantage@yahoogroups.com
Subject: [Vantage] Switching costing Method





Is there any way to switch costing method????
Please reply.
thank you
Z R





[Non-text portions of this message have been removed]
4
We switched from Average to Standard Cost. See below for the Project Plan. These task were assigned to various people in our Organization and took about 4 hours to complete.

Each report that was created was attached to the task for review at a later date.

Good Luck.

1. Establish Reason Code
2. Verify Standard Cost
3. Print Part Cost Variance Dashboard
4. Write off Scrap and First Articles
5. Cease all Transactions in Vantage
6. Print Part Cost Variance
7. Backup Vantage
8. Run Stock Status Report
A. Export to Excel so P/N's can be cut and pasted during QTY adjustment process.
B. This document should be used later to check against the final stock status report.
9. Run COGS/WIP Report
10. Divide Stock Status up between Users
A. Take out finished good inventory that is on-hand.
B. Highlight stock status as each row is adjusted.
C. Take out all components of that finished goods using the quantity adjust. Highlight stock status as each row is adjusted.
D. Use the Standard cost reason code during adjustments.
11. Run Stock Status Report
A. Verify all stock has been removed from Vantage.
12. Run Conversion Script (SQL Code)
A. Convert Average to Standard Cost
B. Turn off Track Lots on all parts
C. Set Standard Cost as default for all new parts.
13. Sample 10 Parts
A. Add Qty's back to Vantage
B. Verify Part Entry
C. Verify Qty's
D. Verify Lots
E. Verify Cost Type
F. Materials Manager will confirm parts and Go-No Go
14. Return Qty's back to Inventory
15. Run Stock Status


--- In vantage@yahoogroups.com, "Gerry Loranger" <gloranger@...> wrote:
>
> Sure, just go into the Part Master and change it in the Part tab. I'm
> guessing you have inventory on hand and it's disabled. If so, you will have
> to zero it out to change the costing method and then re-add it after you've
> made the change.
>
>
>
> Gerry
>
>
>
> From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of
> zuhaib_akhtar
> Sent: Wednesday, January 20, 2010 9:02 AM
> To: vantage@yahoogroups.com
> Subject: [Vantage] Switching costing Method
>
>
>
>
>
> Is there any way to switch costing method????
> Please reply.
> thank you
> Z R
>
>
>
>
>
> [Non-text portions of this message have been removed]
>
5
Before you did this you filed for approval from the IRS right? According to IRS regulations as documented in Publication 538 on page 28

"Once you have set up your accounting method and filed your first return, you generally must get IRS approval
before you change the method. In general, you must file a Form 3115 to request a change in either an overall accounting
method or the accounting treatment of any item......

Approval required. The following are change of accounting method that require IRS approval.

A change from the cash method to the accrual method or vice versa.
A change in the method or basis used to value inventory.
A change in the amortization or depreciation method."

Since inventory is a taxable item, in general, the IRS requires that you file a form 3115 and receive approval prior to changing your inventory costing method. If you do not, you are in violation of IRS regulations and are subject to significant penalties should you be audited.

I'll be happy to post the entire publication on the list if anyone would like but it is easily available at irs.gov.

Regards,

Michael

Michael Barry
Aspacia Systems Inc
866.566.9600
312.803.0730 fax
http://www.aspacia.com/

This email, and any attachments thereto, is intended only for use by the addressee(s) named herein and may contain legally privileged and/or confidential information. If you are not the intended recipient of this email, you are hereby notified that any dissemination, distribution or copying of this email, and any attachments thereto, is strictly prohibited. If you have received this email in error, please immediately notify me by telephone and permanently delete the original and any copy of any email and any printout thereof.




On Jan 20, 2010, at 6:43 AM, batlou wrote:

> We switched from Average to Standard Cost. See below for the Project Plan. These task were assigned to various people in our Organization and took about 4 hours to complete.
>
> Each report that was created was attached to the task for review at a later date.
>
> Good Luck.
>
> 1. Establish Reason Code
> 2. Verify Standard Cost
> 3. Print Part Cost Variance Dashboard
> 4. Write off Scrap and First Articles
> 5. Cease all Transactions in Vantage
> 6. Print Part Cost Variance
> 7. Backup Vantage
> 8. Run Stock Status Report
> A. Export to Excel so P/N's can be cut and pasted during QTY adjustment process.
> B. This document should be used later to check against the final stock status report.
> 9. Run COGS/WIP Report
> 10. Divide Stock Status up between Users
> A. Take out finished good inventory that is on-hand.
> B. Highlight stock status as each row is adjusted.
> C. Take out all components of that finished goods using the quantity adjust. Highlight stock status as each row is adjusted.
> D. Use the Standard cost reason code during adjustments.
> 11. Run Stock Status Report
> A. Verify all stock has been removed from Vantage.
> 12. Run Conversion Script (SQL Code)
> A. Convert Average to Standard Cost
> B. Turn off Track Lots on all parts
> C. Set Standard Cost as default for all new parts.
> 13. Sample 10 Parts
> A. Add Qty's back to Vantage
> B. Verify Part Entry
> C. Verify Qty's
> D. Verify Lots
> E. Verify Cost Type
> F. Materials Manager will confirm parts and Go-No Go
> 14. Return Qty's back to Inventory
> 15. Run Stock Status
>
>
> --- In vantage@yahoogroups.com, "Gerry Loranger" <gloranger@...> wrote:
> >
> > Sure, just go into the Part Master and change it in the Part tab. I'm
> > guessing you have inventory on hand and it's disabled. If so, you will have
> > to zero it out to change the costing method and then re-add it after you've
> > made the change.
> >
> >
> >
> > Gerry
> >
> >
> >
> > From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of
> > zuhaib_akhtar
> > Sent: Wednesday, January 20, 2010 9:02 AM
> > To: vantage@yahoogroups.com
> > Subject: [Vantage] Switching costing Method
> >
> >
> >
> >
> >
> > Is there any way to switch costing method????
> > Please reply.
> > thank you
> > Z R
> >
> >
> >
> >
> >
> > [Non-text portions of this message have been removed]
> >
>
>



[Non-text portions of this message have been removed]
6
> > Gerry
I am sorry I have not mentioned before I am using Vantage 6.10.
i was not able to see part tab there.
Actually I want to switch to last cost whatever it was.
thank you
ZR


--- In vantage@yahoogroups.com, "batlou" <brian.chandler@...> wrote:
>
> We switched from Average to Standard Cost. See below for the Project Plan. These task were assigned to various people in our Organization and took about 4 hours to complete.
>
> Each report that was created was attached to the task for review at a later date.
>
> Good Luck.
>
> 1. Establish Reason Code
> 2. Verify Standard Cost
> 3. Print Part Cost Variance Dashboard
> 4. Write off Scrap and First Articles
> 5. Cease all Transactions in Vantage
> 6. Print Part Cost Variance
> 7. Backup Vantage
> 8. Run Stock Status Report
> A. Export to Excel so P/N's can be cut and pasted during QTY adjustment process.
> B. This document should be used later to check against the final stock status report.
> 9. Run COGS/WIP Report
> 10. Divide Stock Status up between Users
> A. Take out finished good inventory that is on-hand.
> B. Highlight stock status as each row is adjusted.
> C. Take out all components of that finished goods using the quantity adjust. Highlight stock status as each row is adjusted.
> D. Use the Standard cost reason code during adjustments.
> 11. Run Stock Status Report
> A. Verify all stock has been removed from Vantage.
> 12. Run Conversion Script (SQL Code)
> A. Convert Average to Standard Cost
> B. Turn off Track Lots on all parts
> C. Set Standard Cost as default for all new parts.
> 13. Sample 10 Parts
> A. Add Qty's back to Vantage
> B. Verify Part Entry
> C. Verify Qty's
> D. Verify Lots
> E. Verify Cost Type
> F. Materials Manager will confirm parts and Go-No Go
> 14. Return Qty's back to Inventory
> 15. Run Stock Status
>
>
> --- In vantage@yahoogroups.com, "Gerry Loranger" <gloranger@> wrote:
> >
> > Sure, just go into the Part Master and change it in the Part tab. I'm
> > guessing you have inventory on hand and it's disabled. If so, you will have
> > to zero it out to change the costing method and then re-add it after you've
> > made the change.
> >
> >
> >
> > Gerry
> >
> >
> >
> > From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of
> > zuhaib_akhtar
> > Sent: Wednesday, January 20, 2010 9:02 AM
> > To: vantage@yahoogroups.com
> > Subject: [Vantage] Switching costing Method
> >
> >
> >
> >
> >
> > Is there any way to switch costing method????
> > Please reply.
> > thank you
> > Z R
> >
> >
> >
> >
> >
> > [Non-text portions of this message have been removed]
> >
>
7
I remember that we purchased one program thru Epicor to update Standard Cost.
The program did export from excel to Vantage.


--- In vantage@yahoogroups.com, "zuhaib_akhtar" <zuhaib_akhtar@...> wrote:
>
> > > Gerry
> I am sorry I have not mentioned before I am using Vantage 6.10.
> i was not able to see part tab there.
> Actually I want to switch to last cost whatever it was.
> thank you
> ZR
>
>
> --- In vantage@yahoogroups.com, "batlou" <brian.chandler@> wrote:
> >
> > We switched from Average to Standard Cost. See below for the Project Plan. These task were assigned to various people in our Organization and took about 4 hours to complete.
> >
> > Each report that was created was attached to the task for review at a later date.
> >
> > Good Luck.
> >
> > 1. Establish Reason Code
> > 2. Verify Standard Cost
> > 3. Print Part Cost Variance Dashboard
> > 4. Write off Scrap and First Articles
> > 5. Cease all Transactions in Vantage
> > 6. Print Part Cost Variance
> > 7. Backup Vantage
> > 8. Run Stock Status Report
> > A. Export to Excel so P/N's can be cut and pasted during QTY adjustment process.
> > B. This document should be used later to check against the final stock status report.
> > 9. Run COGS/WIP Report
> > 10. Divide Stock Status up between Users
> > A. Take out finished good inventory that is on-hand.
> > B. Highlight stock status as each row is adjusted.
> > C. Take out all components of that finished goods using the quantity adjust. Highlight stock status as each row is adjusted.
> > D. Use the Standard cost reason code during adjustments.
> > 11. Run Stock Status Report
> > A. Verify all stock has been removed from Vantage.
> > 12. Run Conversion Script (SQL Code)
> > A. Convert Average to Standard Cost
> > B. Turn off Track Lots on all parts
> > C. Set Standard Cost as default for all new parts.
> > 13. Sample 10 Parts
> > A. Add Qty's back to Vantage
> > B. Verify Part Entry
> > C. Verify Qty's
> > D. Verify Lots
> > E. Verify Cost Type
> > F. Materials Manager will confirm parts and Go-No Go
> > 14. Return Qty's back to Inventory
> > 15. Run Stock Status
> >
> >
> > --- In vantage@yahoogroups.com, "Gerry Loranger" <gloranger@> wrote:
> > >
> > > Sure, just go into the Part Master and change it in the Part tab. I'm
> > > guessing you have inventory on hand and it's disabled. If so, you will have
> > > to zero it out to change the costing method and then re-add it after you've
> > > made the change.
> > >
> > >
> > >
> > > Gerry
> > >
> > >
> > >
> > > From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of
> > > zuhaib_akhtar
> > > Sent: Wednesday, January 20, 2010 9:02 AM
> > > To: vantage@yahoogroups.com
> > > Subject: [Vantage] Switching costing Method
> > >
> > >
> > >
> > >
> > >
> > > Is there any way to switch costing method????
> > > Please reply.
> > > thank you
> > > Z R
> > >
> > >
> > >
> > >
> > >
> > > [Non-text portions of this message have been removed]
> > >
> >
>
8
gidday - we did this for groups of parts in both 6.1 and 8.03.405A with macros I wrote.

pretty sure the latest macro looked at stock on hand figures, adjusted all off exactly per figures, changed cost, adjusted all stock back on exactly as per figures. As the macro is pretty quick, we figured it could be run live - and I'm pretty sure we did so without problems. In 8 it was all our purchased parts, so 5000-8000 parts? Accounts changed their minds a few months later though, and wanted it all changed back... Fortunately the macro is easy to tweak either way ;-)

I can elaborate if desired.

Kerry

--- In vantage@yahoogroups.com, "chllee72" <clee@...> wrote:
>
> I remember that we purchased one program thru Epicor to update Standard Cost.
> The program did export from excel to Vantage.
>
>
> --- In vantage@yahoogroups.com, "zuhaib_akhtar" <zuhaib_akhtar@> wrote:
> >
> > > > Gerry
> > I am sorry I have not mentioned before I am using Vantage 6.10.
> > i was not able to see part tab there.
> > Actually I want to switch to last cost whatever it was.
> > thank you
> > ZR
> >
> >
> > --- In vantage@yahoogroups.com, "batlou" <brian.chandler@> wrote:
> > >
> > > We switched from Average to Standard Cost. See below for the Project Plan. These task were assigned to various people in our Organization and took about 4 hours to complete.
> > >
> > > Each report that was created was attached to the task for review at a later date.
> > >
> > > Good Luck.
> > >
> > > 1. Establish Reason Code
> > > 2. Verify Standard Cost
> > > 3. Print Part Cost Variance Dashboard
> > > 4. Write off Scrap and First Articles
> > > 5. Cease all Transactions in Vantage
> > > 6. Print Part Cost Variance
> > > 7. Backup Vantage
> > > 8. Run Stock Status Report
> > > A. Export to Excel so P/N's can be cut and pasted during QTY adjustment process.
> > > B. This document should be used later to check against the final stock status report.
> > > 9. Run COGS/WIP Report
> > > 10. Divide Stock Status up between Users
> > > A. Take out finished good inventory that is on-hand.
> > > B. Highlight stock status as each row is adjusted.
> > > C. Take out all components of that finished goods using the quantity adjust. Highlight stock status as each row is adjusted.
> > > D. Use the Standard cost reason code during adjustments.
> > > 11. Run Stock Status Report
> > > A. Verify all stock has been removed from Vantage.
> > > 12. Run Conversion Script (SQL Code)
> > > A. Convert Average to Standard Cost
> > > B. Turn off Track Lots on all parts
> > > C. Set Standard Cost as default for all new parts.
> > > 13. Sample 10 Parts
> > > A. Add Qty's back to Vantage
> > > B. Verify Part Entry
> > > C. Verify Qty's
> > > D. Verify Lots
> > > E. Verify Cost Type
> > > F. Materials Manager will confirm parts and Go-No Go
> > > 14. Return Qty's back to Inventory
> > > 15. Run Stock Status
> > >
> > >
> > > --- In vantage@yahoogroups.com, "Gerry Loranger" <gloranger@> wrote:
> > > >
> > > > Sure, just go into the Part Master and change it in the Part tab. I'm
> > > > guessing you have inventory on hand and it's disabled. If so, you will have
> > > > to zero it out to change the costing method and then re-add it after you've
> > > > made the change.
> > > >
> > > >
> > > >
> > > > Gerry
> > > >
> > > >
> > > >
> > > > From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of
> > > > zuhaib_akhtar
> > > > Sent: Wednesday, January 20, 2010 9:02 AM
> > > > To: vantage@yahoogroups.com
> > > > Subject: [Vantage] Switching costing Method
> > > >
> > > >
> > > >
> > > >
> > > >
> > > > Is there any way to switch costing method????
> > > > Please reply.
> > > > thank you
> > > > Z R
> > > >
> > > >
> > > >
> > > >
> > > >
> > > > [Non-text portions of this message have been removed]
> > > >
> > >
> >
>
9
For 6.1 you still can't update the costing method with an onhand
quantity of parts. So you qty adjust the parts to zero, change costing
method from STD to Last and then qty adjust the parts back.



Mike





From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
Of chllee72
Sent: Wednesday, January 20, 2010 10:05 AM
To: vantage@yahoogroups.com
Subject: [Vantage] Re: Switching costing Method





I remember that we purchased one program thru Epicor to update Standard
Cost.
The program did export from excel to Vantage.

--- In vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com> ,
"zuhaib_akhtar" <zuhaib_akhtar@...> wrote:
>
> > > Gerry
> I am sorry I have not mentioned before I am using Vantage 6.10.
> i was not able to see part tab there.
> Actually I want to switch to last cost whatever it was.
> thank you
> ZR
>
>
> --- In vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com> ,
"batlou" <brian.chandler@> wrote:
> >
> > We switched from Average to Standard Cost. See below for the Project
Plan. These task were assigned to various people in our Organization and
took about 4 hours to complete.
> >
> > Each report that was created was attached to the task for review at
a later date.
> >
> > Good Luck.
> >
> > 1. Establish Reason Code
> > 2. Verify Standard Cost
> > 3. Print Part Cost Variance Dashboard
> > 4. Write off Scrap and First Articles
> > 5. Cease all Transactions in Vantage
> > 6. Print Part Cost Variance
> > 7. Backup Vantage
> > 8. Run Stock Status Report
> > A. Export to Excel so P/N's can be cut and pasted during QTY
adjustment process.
> > B. This document should be used later to check against the final
stock status report.
> > 9. Run COGS/WIP Report
> > 10. Divide Stock Status up between Users
> > A. Take out finished good inventory that is on-hand.
> > B. Highlight stock status as each row is adjusted.
> > C. Take out all components of that finished goods using the quantity
adjust. Highlight stock status as each row is adjusted.
> > D. Use the Standard cost reason code during adjustments.
> > 11. Run Stock Status Report
> > A. Verify all stock has been removed from Vantage.
> > 12. Run Conversion Script (SQL Code)
> > A. Convert Average to Standard Cost
> > B. Turn off Track Lots on all parts
> > C. Set Standard Cost as default for all new parts.
> > 13. Sample 10 Parts
> > A. Add Qty's back to Vantage
> > B. Verify Part Entry
> > C. Verify Qty's
> > D. Verify Lots
> > E. Verify Cost Type
> > F. Materials Manager will confirm parts and Go-No Go
> > 14. Return Qty's back to Inventory
> > 15. Run Stock Status
> >
> >
> > --- In vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com> ,
"Gerry Loranger" <gloranger@> wrote:
> > >
> > > Sure, just go into the Part Master and change it in the Part tab.
I'm
> > > guessing you have inventory on hand and it's disabled. If so, you
will have
> > > to zero it out to change the costing method and then re-add it
after you've
> > > made the change.
> > >
> > >
> > >
> > > Gerry
> > >
> > >
> > >
> > > From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com> ] On
Behalf Of
> > > zuhaib_akhtar
> > > Sent: Wednesday, January 20, 2010 9:02 AM
> > > To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
> > > Subject: [Vantage] Switching costing Method
> > >
> > >
> > >
> > >
> > >
> > > Is there any way to switch costing method????
> > > Please reply.
> > > thank you
> > > Z R
> > >
> > >
> > >
> > >
> > >
> > > [Non-text portions of this message have been removed]
> > >
> >
>




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[Non-text portions of this message have been removed]
10
Yes, we had to report this to the IRS. We used to be FIFO when using Dynamics but Vantage only left us with the choice of Average or Standard. Our Business Model really would work better with FIFO and we will likely switch again, I smell and audit, to FIFO soon after we upgrade to Version 9.

Good Luck.

--- In vantage@yahoogroups.com, Michael Barry <mbarry@...> wrote:
>
> Before you did this you filed for approval from the IRS right? According to IRS regulations as documented in Publication 538 on page 28
>
> "Once you have set up your accounting method and filed your first return, you generally must get IRS approval
> before you change the method. In general, you must file a Form 3115 to request a change in either an overall accounting
> method or the accounting treatment of any item......
>
> Approval required. The following are change of accounting method that require IRS approval.
>
> A change from the cash method to the accrual method or vice versa.
> A change in the method or basis used to value inventory.
> A change in the amortization or depreciation method."
>
> Since inventory is a taxable item, in general, the IRS requires that you file a form 3115 and receive approval prior to changing your inventory costing method. If you do not, you are in violation of IRS regulations and are subject to significant penalties should you be audited.
>
> I'll be happy to post the entire publication on the list if anyone would like but it is easily available at irs.gov.
>
> Regards,
>
> Michael
>
> Michael Barry
> Aspacia Systems Inc
> 866.566.9600
> 312.803.0730 fax
> http://www.aspacia.com/
>
> This email, and any attachments thereto, is intended only for use by the addressee(s) named herein and may contain legally privileged and/or confidential information. If you are not the intended recipient of this email, you are hereby notified that any dissemination, distribution or copying of this email, and any attachments thereto, is strictly prohibited. If you have received this email in error, please immediately notify me by telephone and permanently delete the original and any copy of any email and any printout thereof.
>
>
>
>
> On Jan 20, 2010, at 6:43 AM, batlou wrote:
>
> > We switched from Average to Standard Cost. See below for the Project Plan. These task were assigned to various people in our Organization and took about 4 hours to complete.
> >
> > Each report that was created was attached to the task for review at a later date.
> >
> > Good Luck.
> >
> > 1. Establish Reason Code
> > 2. Verify Standard Cost
> > 3. Print Part Cost Variance Dashboard
> > 4. Write off Scrap and First Articles
> > 5. Cease all Transactions in Vantage
> > 6. Print Part Cost Variance
> > 7. Backup Vantage
> > 8. Run Stock Status Report
> > A. Export to Excel so P/N's can be cut and pasted during QTY adjustment process.
> > B. This document should be used later to check against the final stock status report.
> > 9. Run COGS/WIP Report
> > 10. Divide Stock Status up between Users
> > A. Take out finished good inventory that is on-hand.
> > B. Highlight stock status as each row is adjusted.
> > C. Take out all components of that finished goods using the quantity adjust. Highlight stock status as each row is adjusted.
> > D. Use the Standard cost reason code during adjustments.
> > 11. Run Stock Status Report
> > A. Verify all stock has been removed from Vantage.
> > 12. Run Conversion Script (SQL Code)
> > A. Convert Average to Standard Cost
> > B. Turn off Track Lots on all parts
> > C. Set Standard Cost as default for all new parts.
> > 13. Sample 10 Parts
> > A. Add Qty's back to Vantage
> > B. Verify Part Entry
> > C. Verify Qty's
> > D. Verify Lots
> > E. Verify Cost Type
> > F. Materials Manager will confirm parts and Go-No Go
> > 14. Return Qty's back to Inventory
> > 15. Run Stock Status
> >
> >
> > --- In vantage@yahoogroups.com, "Gerry Loranger" <gloranger@> wrote:
> > >
> > > Sure, just go into the Part Master and change it in the Part tab. I'm
> > > guessing you have inventory on hand and it's disabled. If so, you will have
> > > to zero it out to change the costing method and then re-add it after you've
> > > made the change.
> > >
> > >
> > >
> > > Gerry
> > >
> > >
> > >
> > > From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of
> > > zuhaib_akhtar
> > > Sent: Wednesday, January 20, 2010 9:02 AM
> > > To: vantage@yahoogroups.com
> > > Subject: [Vantage] Switching costing Method
> > >
> > >
> > >
> > >
> > >
> > > Is there any way to switch costing method????
> > > Please reply.
> > > thank you
> > > Z R
> > >
> > >
> > >
> > >
> > >
> > > [Non-text portions of this message have been removed]
> > >
> >
> >
>
>
>
> [Non-text portions of this message have been removed]
>
11
You are correct as far as filing taxes goes. However, you can switch your book method without IRS approval. If you change your book method and do not get approval from the IRS to change your inventory method, you will have to calculate what your inventory would have been if you had not changed methods. You would then use that calculated amount when filing your taxes. Such a calculation can be a lot of work, but may be worth it in some cases.

There are a number of situations where accounting for tax purposes is different than accounting for book purposes. There are some situations where what is required/allowed for tax purposes is unacceptable under generally accepted accounting principles. I doubt there are any companies of significant size that have no book/tax accounting differences.

Thom Rose
Controller
Electric Mirror LLC
HOTEL LUXURY

"The World Leader in Back-lit Mirrors & Mirror TV Technology"

T 425 776-4946
AÂ 11831 Beverly Park Rd, Bldg D, Everett, WA 98204Â USA
www.electricmirror.com

-----Original Message-----
From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of Michael Barry
Sent: Wednesday, January 20, 2010 9:22 AM
To: vantage@yahoogroups.com
Subject: Re: [Vantage] Re: Switching costing Method

Before you did this you filed for approval from the IRS right? According to IRS regulations as documented in Publication 538 on page 28

"Once you have set up your accounting method and filed your first return, you generally must get IRS approval
before you change the method. In general, you must file a Form 3115 to request a change in either an overall accounting
method or the accounting treatment of any item......

Approval required. The following are change of accounting method that require IRS approval.

A change from the cash method to the accrual method or vice versa.
A change in the method or basis used to value inventory.
A change in the amortization or depreciation method."

Since inventory is a taxable item, in general, the IRS requires that you file a form 3115 and receive approval prior to changing your inventory costing method. If you do not, you are in violation of IRS regulations and are subject to significant penalties should you be audited.

I'll be happy to post the entire publication on the list if anyone would like but it is easily available at irs.gov.

Regards,

Michael

Michael Barry
Aspacia Systems Inc
866.566.9600
312.803.0730 fax
http://www.aspacia.com/

This email, and any attachments thereto, is intended only for use by the addressee(s) named herein and may contain legally privileged and/or confidential information. If you are not the intended recipient of this email, you are hereby notified that any dissemination, distribution or copying of this email, and any attachments thereto, is strictly prohibited. If you have received this email in error, please immediately notify me by telephone and permanently delete the original and any copy of any email and any printout thereof.




On Jan 20, 2010, at 6:43 AM, batlou wrote:

> We switched from Average to Standard Cost. See below for the Project Plan. These task were assigned to various people in our Organization and took about 4 hours to complete.
>
> Each report that was created was attached to the task for review at a later date.
>
> Good Luck.
>
> 1. Establish Reason Code
> 2. Verify Standard Cost
> 3. Print Part Cost Variance Dashboard
> 4. Write off Scrap and First Articles
> 5. Cease all Transactions in Vantage
> 6. Print Part Cost Variance
> 7. Backup Vantage
> 8. Run Stock Status Report
> A. Export to Excel so P/N's can be cut and pasted during QTY adjustment process.
> B. This document should be used later to check against the final stock status report.
> 9. Run COGS/WIP Report
> 10. Divide Stock Status up between Users
> A. Take out finished good inventory that is on-hand.
> B. Highlight stock status as each row is adjusted.
> C. Take out all components of that finished goods using the quantity adjust. Highlight stock status as each row is adjusted.
> D. Use the Standard cost reason code during adjustments.
> 11. Run Stock Status Report
> A. Verify all stock has been removed from Vantage.
> 12. Run Conversion Script (SQL Code)
> A. Convert Average to Standard Cost
> B. Turn off Track Lots on all parts
> C. Set Standard Cost as default for all new parts.
> 13. Sample 10 Parts
> A. Add Qty's back to Vantage
> B. Verify Part Entry
> C. Verify Qty's
> D. Verify Lots
> E. Verify Cost Type
> F. Materials Manager will confirm parts and Go-No Go
> 14. Return Qty's back to Inventory
> 15. Run Stock Status
>
>
> --- In vantage@yahoogroups.com, "Gerry Loranger" <gloranger@...> wrote:
> >
> > Sure, just go into the Part Master and change it in the Part tab. I'm
> > guessing you have inventory on hand and it's disabled. If so, you will have
> > to zero it out to change the costing method and then re-add it after you've
> > made the change.
> >
> >
> >
> > Gerry
> >
> >
> >
> > From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of
> > zuhaib_akhtar
> > Sent: Wednesday, January 20, 2010 9:02 AM
> > To: vantage@yahoogroups.com
> > Subject: [Vantage] Switching costing Method
> >
> >
> >
> >
> >
> > Is there any way to switch costing method????
> > Please reply.
> > thank you
> > Z R
> >
> >
> >
> >
> >
> > [Non-text portions of this message have been removed]
> >
>
>



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



------------------------------------

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