Manex Cost Rollup

 The first step is to roll buy parts by determining the percentage change from rollups based on average purchases to the current standard cost, and look at a selected group of items. Put another way these would be items for which the average cost varied from the current cost by the percentage entered. If a zero is entered for the percentage, then all items are calculated and displayed. 

Then the user has the option to select to change to the average cost, or insert a cost manually, or do nothing. If the user elects to change the standard cost, and there is inventory, there is a cost adjustment transaction to the GL to account for the changed inventory value.

After rolling the costs for buy parts then the user rolls up the buy parts for assemblies. This has to be done for each level of assembly used in your BOMs. The same options are available for modifying the standard cost. One difference for assemblies is that all of the costs in the item master (material, labor, oh, other, UDF) for lower level parts  are rolled into the material cost for the upper assembly.  There are also calculations that will amortize the cost of setup and run scrap over a standard lot size, to avoid lumping all of these into the cost of one part.

Again, if there is inventory for the parts (assemblies) being changed, then there are GL transactions recorded to account for changes in inventory value.

Where are  the standard costs used? 

 They are used throughout the system for any transaction involving parts and inventory. The standard cost is the value used when material is transferred from one location to another. This includes warehouse to warehouse, to kits, receiving and issuing parts, dmrs, sales orders, etc. The standard is also used to determine the variances. These include purchasing, configuration and manufacturing variances. In Sales Orders, the standard costs are used to determine the Cost of Goods Sold.