Recalculate Standard Costs

1. Recalculate Standard Costs Alan Chorney Professional Services Visual South, Inc.

2. Choosing Parts to Recalc • Select ALL includes Fabricated as well as Purchased • Select CERTAIN parts holding down CTRL key and click on line

3. Receipt Selection Option • Defines period VISUAL calcs average receipt value • Enter a start & end date to get average of PO receipts • Use latest receipt if no receipt • Use this option for last PO receipt value rather than average • Use tomorrow’s date (cannot have receipts tomorrow therefore uses last receipt)

4. Filter Results • Show Changes only – filters just those parts where the results differ from current part master value • Further filter by % variance or dollar variance • Available only after clicking on RECALC SELECT PARTS

5. Updating Part Maintenance • If desired, PRINT results to see value change • Only applicable in a standard environment • In actual existing FIFO layers do not change • Save will update Part Maintenance with new standards • If there are some parts that you do not want to update, double click on “check mark” to remove check mark

6. Fabricated Parts • This function can recalc fabricated parts as well as purchased • Be aware that recalcing Fabricated parts could set a part maintenance value that differs from the parts engineering master

7. Fabricated Parts-Material • Suggest recalcing raw material(RM) parts only • Once RM costs updated, “Push down” updated RM costs to Engineering Masters • Under Part Maintenance, Maintain, Reset Matl Requirement costs • Updates costs on RM cards

8. Fabricated Parts-Labor & Burden • Change standard hourly rates and burden rates/% on shop esources • ENG/MFG, SHOP RESOURCES • Make changes manually or thru update queries, etc. • “Push down” updated Labor/Burden costs to Engineering Masters • Under EDIT, RESET OPERATION COSTS • Updates costs on Operation cards • Updates costs on RM cards

9. Fabricated Parts-Outside Services • Change standard costs for each Outside Service • ENG/MFG, OUTSIDE SERVICE MAINTENANCE • Make changes manually or thru update queries, etc. • “Push down” updated Service costs to Engineering Masters • Under MAINTAIN, RESET OPERATION COSTS • Updates costs on Outside Service cards

10. Update Part Mainenance • The above steps updated Eng Masters with updated costs • Now update Part Master with updated costs from Eng Masters • Under PART MAINTENANCE, MAINTAIN, IMPLODE COSTS • Implode goes out to Eng Masters to get updated costs

11. Implode Cost Settings • Select ALL or selected parts to IMPLODE • Multi-Level - controls how Implode Costs follow chains of fabricated parts • If selected, costs are imploded recursively for each fabricated part required in the eng master, until only purchased parts are found • If not selected, Costs associated with the material requirements are used directly as is • The Permanently Save option controls if the recursive implosion is permanently saved in each part master at each part level

12. Thank You • alan.chorney@visualsouth.com