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Cost Updates - Printable Version

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Cost Updates - agaluski - 02-19-2015 12:27 AM

Just a few points, questions, ramblings. Some may be more financial questions than WebERP package questions

1) I noticed that when we update a purchased item's cost in StockCostupdate.php we call UpdateCost($db, $StockID); //Update any affected BOMs.

Should this same call be inside of SupplierInvoice.php if the standard cost is changed? Instead of waiting until the next W/O is released to perform a cost roll?
I am thinking if I have Finished Good on hand as well its value should change as well to the new average? In case I sell it before I decide to make more I want the cost to be recorded at the proper average. or should I value it at the OLD cost until I decide to make more because that is the cost of it when i made it?

2) In SupplierInvoice.php we update salesanalysis and stockmoves if the standard cost has changed and we have sold some between receiving and invoicing. I don't see this in the Shipment Costing Module. The overall Cost Of Sales will be changed in the G/L correctly via a cost adjustment transaction but any outgoing orders in between receiving and closing the shipment will not get updated in salesanalysis or stockmoves details. Should this be added? See note below on commissions in point 3. My incoming shipment costs needs to show in salesanalysis for the product or my GP is overstated in this area (G/L is ok)

3) Should we add an update for salesanalysis and stockmoves for any Parent items of a cost that is changed during invoicing that have been shipped between raw material receipt and invoice.
My BOM - we sell some items just repackaged:
Parent A
- Child B (100%)
If I have 0 on hand of A and 0 on hand of B. My Avg Cost is 1.00 of both A and B.
I have a P/O for .98 for B. I receive 100 LB of B. I use W/O Module to transform 100 LB of B into A. I sell A at 1.02/LB. System records salesanalysis of .02/LB profile and stockmoves shows Price=1.02 and cost=1.00. Now I get supplierinvoice for .98. I enter it. My cost changes on Product B to .98. Currently it doesn't roll to Product A (Point 1 in this message). I think in my head that I purchased at .98 and sold at 1.02 for a .04 profit. Sales Analysis and Daily sales Inquiry shows .02 profit. P&L shows correct profit because .02*100 was put into Purchase Gains/Loss account at Supplier Invoice time because of 0 QOH of Product B. Any way to fix this? Commissions could in theory be paid on salesanalysis so that needs to be accurate I think

Thoughts from the costing and WebERP experts??


RE: Cost Updates - phil - 02-21-2015 01:47 PM

[quote]
Should this same call be inside of SupplierInvoice.php if the standard cost is changed? Instead of waiting until the next W/O is released to perform a cost roll?
[/qoute]
Yes I think you are correct
2. Yes it should be added ... I found this area quite tricky and gave up a bit I fear.
3. Again probably right.