Actual Costing

1. Actual Costing By MIS Department

2. What is Actual Costing? • Costing done by MG or the Factories is an estimate only • Once the goods actually ship, Imports receives invoices for the various costs on the shipment • The Warehouse receives the goods and compares the receiving to the shipment records • When the invoices from the vendors are PAID, the cost of the goods must be updated to reflect the ACTUAL COST.

3. Actual Cost Sheets • Actual Cost sheets are created when receipts are entered into RLM • There is one actual cost sheet per shipment • Each actual cost sheet contains component costs such as FOB, Freight and Duty • All the component costs that exist for a shipment must be actualized. (Skip to Main Menu)

4. Glossary of Training Terms • The following terms will be used throughout this training program: • Field: A box on the screen into which you enter information • Value: The information (data) being entered in the field. Example: Division number, FGPO number • Icon: An image you may click to perform a function such as select, submit or exit • (Single-)Click: Also “Select.” Hitting the left mouse button once. This will activate an icon or select a row in a list of values • Double-click: Hitting the left mouse button twice o the same part of the screen. Used only to select and return a value from a list.

5. Using the RLM System • These are the primary RLM icons you will use: • Search: Located next to entry fields. Clicking this icon brings up a pop-up window with a list of all possible values for the field (for example, the next to the Division field will show a list of all divisions) (Shift-F9 keys or F21 key) • Select: Located on the Search pop-up windows. You may click on a line and click Select to return its value to the main screen • OK (Submit): Located in the bottom right corner of each screen. Processes the information on screen and brings you to the next screen • Return (Back): Located at the top of each screen. Click this icon to go back one screen (F2 key) • Exit: Located at the top of each screen. Click this icon to return to the menu or close a pop-up (F3 key)

6. Sign On Enter your User ID and Password here Note: User ID and Password are initially assigned by MIS. You will be prompted to change it the first time you login. The password field IS case-sensitive. Click OK

7. Welcome Click the check (or hit the Enter key) to proceed Click here to proceed (Enter key)

8. Select Application Enter the Company number (JEI = 01, DS = 04) Click the Actual Costing button in the menu (position # may vary) If you don’t enter a Company or enter the wrong number, you will receive this error: Click OK

9. Select Shipment for Costing Notice the GL Period Date Click here if the GL Period is incorrect

10. G/L Period Password Type the password – press enter to bring up the period edit fields Update the Accounting Period Month and Year Click OK to update. You will have to click Return (F2) to go back

11. Select Shipment for Costing The Operator ID for Actual Cost entry is always “@@” Click “Continue”

12. Batch Control for Actual Cost Sheets The list of unfinalized actual cost sheets appears. If at least one component cost is unfinalized, the cost sheet will appear here. Double-click on a line to enter that actual cost sheet

13. Actual Cost Sheet The Actual Cost sheet is an estimate pulled from the cost of the POs on the shipments. You may update the values here. FOB for related factories/vendors is always automatically approved – there is no need to actualize it. For non-related factories or vendors the A will not appear so you can update the cost Type “S” on a row in this column to select a specific invoice to assign to this batch Click OK

14. Select Vendor Type the vendor number or click the icon to select from a list

15. Apply Invoice to Component Type the invoice number or click the icon to select from a list Double-click an invoice to select it, or single-click and hit the button

16. Submit Selected Invoice Notice that the monies value has been filled in Click OK

17. Invoice Added The invoice information and value has been added to the list You may add multiple invoices to the component cost by repeating the search/entry process The Variance must be zero in order to continue

18. Remove an Invoice To remove an invoice from the list, select it Click OK to remove the line

19. Apply Invoice(s) to Division(s) Click Apply Monies to Division when done The division value(s) will change

20. Actual Cost Sheet Type “Y” to allocate the cost over all POs on the shipment. Type “N” if the cost is only for one style. See “Editing and Finalizing” Type in or update the actual freight and duty for the shipment in the Value column Click OK

21. Balance the Batch Continue adding actual costs until all costs are entered. When ALL the costs for the shipment have been entered, you may balance the batch. Click Balance this Batch to complete the Actual Costing – it will no longer appear in the list of shipments

22. Batch in Balance Entry Totals are calculated from the individual style cost sheets The total Variance should be $4.00 or less (due to rounding) Hash Totals are from the Actual Cost sheet Click the printer to print the batch and the style cost sheets

23. Batch Out of Balance A variance larger than $4.00 will put the batch out of balance Click Return and adjust the Hash Totals. Allocate over all the styles and re-balance

24. Balance Batch Error If either of these errors appears contact MIS immediately

25. Actual Cost Sheet Once the batch is in balance, approve the cost lines: Type “M” here on each line you modified to Approve it Click OK

26. Cost Lines Approved These three columns are now updated with the date, your user id and the GL period You may remove the M to change the line as long as the GL is the same or prior Click “Balance this Batch” again

27. Finish Balancing Click the scales to finish the balancing and remove the Actual Cost sheet from the batch list

28. Editing and Finalizing the Style Cost Sheets • It may be necessary to edit and finalize the individual style cost sheets that comprise the actual cost batch • Editing of the individual cost sheets should only be done if a portion of the cost for one style is NOT to be allocated over all the styles in the batch • Be sure to type “N” in the “Alloc Y/N” column for that cost line on the Actual Cost sheet • If style cost sheets are not finalized, LDP Cost will not print on the actual cost sheet • If you change one style cost sheet, it is best to re-finalize all the styles.

29. Actual Cost Sheet From the Actual Cost Hash screen, click “Display/Select Styles”

30. Select Style Cost Sheets Select a line for editing. Drag the mouse down to select multiple lines Right-click and choose “Select for Cost Sheet Entry…”

31. Edit and/or Finalize (Step 1) You may edit the cost here if necessary Use the Page Down key or click the small double arrow to view more lines on the cost sheet Click “Finalization” when done

32. Finalize (Step 2) Click “Continue Finalization” Since all style cost sheets were selected, the next cost sheet will now display. Return to Finalize (Step 1) until the screen returns to the list of styles. See next slide

33. Finalization Status Codes When you finalize a cost sheet the YNF field displays “F” If you enter a cost sheet and do NOT finalize the YNF field displays “Y” All style cost sheets should be finalized before you Balance the batch

34. Combine Batches Sometimes it may be necessary to combine batches, for example in the event of a manual receiving after the initial receiving was closed, or if two shipments share one duty or freight bill. Type a “C” on the line of each batch that will be combined into the new batch Click “Combine Selected Batches” (F9)

35. This will not work if you have already processed bills on the batches.

36. What Happens Next • The Actual Costs are approved and removed from the Batch list • Actual Cost of Inventory will be posted to the General Ledger at the end of the month when the Inventory Post is run.