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<< Click to Display Table of Contents >> Update Item Costs |
  
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<< Click to Display Table of Contents >> Update Item Costs |
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AccountMate Enterprise allows you to update standard cost and return cost set up for all inventory item records. It provides the convenience in updating all or a range of inventory items with standard and/or return costs setup, and you can specify the parameters for updating those costs. This function saves you time, since you do not have to select each item individually using the Inventory Maintenance function and calculate a standard and/or return cost for each item separately.
Further, the system displays for your review each item’s new standard and return costs, and gives you an option to save these new costs or revert to the existing standard and return costs of each inventory item.
AccountMate Enterprise allows you to update standard cost and return cost set up for all inventory item records. This function provides the convenience to simultaneously update all or a range of inventory items with standard and/or return costs setup. It also allows you to specify the parameters for updating those costs. This saves you time, since you do not have to select each item individually using the Inventory Maintenance function and calculate a standard and/or return cost for each item separately. Further, the system displays for your review each item’s new standard and return costs and gives you an option to save these new costs or revert to the existing standard and return costs of each inventory item.
To update inventory costs, perform the following steps:
1.Access the Item Cost Update function from the Adjustment group under the Transactions main menu in the Inventory Control module.
2.In the Selection Criteria area, select the inventory items for which you need to update cost values. Set parameters for each of the following:
oWarehouse
Click the List box button to select either All or Range option. Choose All option to update all warehouses; otherwise, select Range option and enter in the From/To fields a range of warehouses for which you want to update cost values. |
oItem #
Click the List box button to select either All or Range option. Choose All option to update all inventory item; otherwise, select Range option and enter in the From/To fields a range of inventory items for which you want to update the standard and return costs. |
oItem Class
Click the List box button to select either All or Range option. Choose All option to update all classes of inventory items; otherwise, select Range option and enter in the From/To fields a range of classes of inventory items for which you want to update cost values. |
oProduct Line
Click the List box button to select either All or Range option. Choose All option to update all product lines; otherwise, select Range option and enter in the From/To fields a range of product lines for inventory items for which you want to update cost values. |
3.To update standard costs, enter values in the following areas:
a.The Base Standard Cost On area allows you to choose a basis for updating the standard cost of the inventory items selected in the Selection Criteria area. Select from the following options:
oStandard Cost
Select this option to base the new standard cost on each item’s current standard cost as entered in the Standard Cost field in the Settings tab of the inventory item record.
Example: If the current standard cost in an item record is US$160.00, the system will update it to US$160.00 plus or minus the percentage of the standard cost or the flat amount entered in the Update Standard Cost By area in this function screen. |
oAverage Cost in All Warehouses
Select this option to base the new standard cost on each item’s average cost in all warehouses. The average cost is automatically generated by the system based on the unit costs of the items stored in all warehouses.
Example: If the standard cost in an item record is US$160.00 and the average cost for units of the item in all warehouses is US$145. The system will update the standard cost to US$145 plus or minus the percentage of the average cost of the item in all warehouses or the flat amount entered in the Update Standard Cost By area in this function screen. |
oAverage Cost in Warehouse
Select this option to base the new standard cost on each item’s average cost in a specific warehouse. The average cost is automatically generated by the system based on the unit costs of the item stored in the specific warehouse.
Example: If the standard cost in an item record is US$160.00 and the average cost for units of the item in the specified warehouse is US$150.00. The system will update the standard cost to AUS$150.00 plus or minus the percentage of the average cost of the item in the specific warehouse or the flat amount you indicate in the Update Standard Cost By area in this function screen.
If you click this option, the adjacent Warehouse field will be enabled. |
oWarehouse
This field is enabled if you select the Average Cost in Warehouse option. Enter in this field the warehouse that you want the new standard cost to based upon. |
oList Price
Select this option to base the new standard costs on each item’s sale price as indicated in the Unit Price field in the Information page of the inventory item records.
Example: If the standard cost in an item record is US$115.00 and its unit price is US$125.00. The system will update the standard cost to US$125.00 plus or minus the percentage of the unit price or the flat amount you indicate in the Update Standard Cost By area in this function screen. |
b.The Update Standard Cost By area allows you to specify to apply a positive/negative percentage rate, or add/subtract a flat amount to/from the new standard cost bases to arrive at the updated standard costs. To specify a decrease in the existing standard cost, precede the rate or amount by a minus (-) sign. Leave the rate or amount at 0.00 to indicate that no percentage will be applied or no flat amount will be added to or subtracted from the new bases.
oPercentage
Select this option to apply a percentage rate to your selected criterion in the Base Standard Cost On area to arrive at the new standard costs of the selected inventory items; then, enter in the adjacent field a positive to be added to or negative percentage rate to be deducted from the new bases.
Example 1: If you want to update the standard costs of items based on the average cost of each item in the “Main” warehouse, you may specify that each item’s new standard cost will be 10.00 % higher than its current average cost in the “Main” warehouse. In this case, an item with a current standard cost of US$50.00 and an average cost in the “Main” warehouse of US$48.00 will have its standard cost updated to US$52.80 [US$48.00 + (10% x US$48.00].
Example 2: If you want to update the standard costs of items based on the average cost of each item in the “Main” warehouse, you may indicate that each item’s new standard cost will be 15.00 % lower than its current average cost in the “Main” warehouse. In this case, an item with a current standard cost of US$75.00 and an average cost in the “Main” warehouse of US$85.00 will have its standard cost updated to US$72.25 [US$85.00 – (15% x US$72.25]. |
oFlat Amount
Select this option to apply a flat amount to your selected criterion in the Base Standard Cost On area to arrive at the new standard costs of the selected inventory items; then, enter in the adjacent field a positive amount to be added to or a negative amount to be subtracted from the new bases.
Example 1: If you want to update the standard costs of items based on their current standard costs, you may specify that each item’s new standard cost will be US$12.00 higher than its current standard cost. In this case, an item with a current standard cost of US$50.00 will have its standard cost updated to US$62.00 [US$50.00 + US$12.00].
Example 2: If you want the standard costs of items to be updated based on their current standard costs, you may specify that each item’s new standard cost will be US$25.00 lower than its current standard cost. In that case, an item with a current standard cost of US$75.00 will have its standard cost updated to US$50.00 [US$75.00 – US$25.00]. |
c.In the Round Standard Cost To area, specify the rounding off decimal places of the updated standard cost to the next higher, nearest or next lower desired integer.
oHigher
Select this option to round off decimal places of the updated standard cost to the next higher integer. When you enter a value in this field, the system automatically divides the new standard cost base by the value you entered in this field and round off the quotient to the next higher integer. The system will then multiply the higher integer by the value you indicate in this field. The system does not allow you to enter a zero value in this field.
Example 1: If you enter 0.50 in this field and the new standard cost base is US$386.6855, the system will divide US$386.6855 by 0.50. The quotient, US$773.371 (US$386.6855/0.50 = US$773.371), will be rounded off by the system to the next higher integer, which is US$774.00. The system will then multiply US$774.00 by 0.50, the value entered in this field, to get the updated standard cost rounded off to the higher integer, which is US$387.00.
Example 2: If you enter 0.25 in this field and the new standard cost base is US$275.3384, the system will divide US$275.3384 by 0.25. The quotient, that is US$1,101.3536 (US$275.3384/0.25 = US$1,101.3536), will be rounded off by the system to the next higher integer, which is US$1,102. The system will then multiply US$1,102 by 0.25, the value entered in this field, to get the updated standard cost rounded off to the higher integer, which is US$275.50. |
oNearest
Select this option to round off decimal places of the updated standard cost to the nearest integer. The system does not accept a zero value in this field.
Example 1: If you enter 0.50 in this field and the new standard cost base is US$386.6855, the system will divide US$386.6855 by 0.50. The quotient, US$773.371 (US$386.6855/0.50 = US$773.371), will be rounded off by the system to the nearest integer, which is US$773.00. The system will then multiply US$773.00 by 0.50, the value entered in this field, to get the updated standard cost rounded off to the nearest integer, which is US$386.50.
Example 2: If you enter 0.25 in this field and the new standard cost base is US$275.3384, the system will divide US$275.3384 by 0.25. The quotient, that is US$1,101.3536 (US$275.3384/0.25 = US$1,101.3536), will be rounded off by the system to the nearest integer, which is US$1,101. The system will then multiply US$1,101 by 0.25, the value entered in this field, to get the updated standard cost rounded off to the nearest integer, which is US$275.25. |
oLower
Select this option to round off decimal places of the updated standard cost to the next lower integer. When you enter a value in this field, the system automatically divides the new standard cost base by the value entered in this field and rounds off the quotient to the lower integer. The system will then multiply the lower integer by the value you entered in this field. The system does not allow you to enter a zero value in this field.
Example 1: If you enter 0.50 in this field and the new standard cost base is US$386.6855, the system will divide US$386.6855 by 0.50. The quotient, US$773.371 (US$386.6855/0.50 = US$773.371), will be rounded off by the system to the lower integer, which is US$773.00. The system will then multiply US$773.00 by 0.50, the value entered in this field, to get the updated standard cost rounded off to the lower integer, which is US$386.50.
Example 2: If you enter 0.25 in this field and the new standard cost base is US$275.3384, the system will divide US$275.3384 by 0.25. The quotient, that is US$1,101.3536 (US$275.3384/0.25 = US$1,101.3536), will be rounded off by the system to the lower integer, which is US$1,101. The system will then multiply US$1,101 by 0.25, the value entered in this field, to get the updated standard cost rounded off to the lower integer, which is US$275.25. |
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4.To update return costs, enter values in the following areas:
a.Define in the Base Return Cost On area the basis for updating the return cost of each item selected in the Selection Criteria area. Select from the following options:
oStandard Cost
Select this option to base the new return costs on each item’s standard cost indicated in the Standard Cost field in the Settings tab of the inventory item record.
Example: If the return cost in an item record is US$750.00 and its standard cost is US$715.00, the system will update the return cost to US$715.00 plus or minus the percentage of the standard cost or the flat amount you indicate in the Update Return Cost By area in this function. |
oReturn Cost
Select this option to base the new return costs on each item’s current return cost indicated in the Return Cost field in the Settings tab of the inventory item record.
Example: If the current return cost in an item record is US$750.00, the system will update it to US$750.00 plus or minus the percentage of the return cost or the flat amount you indicate in the Update Return Cost By area in this function. |
oAverage Cost in All Warehouses
Select this option to base the new return costs on each item’s average cost in all warehouses. The average cost is automatically generated by the system based on the unit costs of the items stored in all warehouses.
Example: If the return cost in an item record is US$750.00 and the average cost for units of the item in all warehouses is US$635.50. The system will update the cost to US$635.50 plus or minus the percentage of the average cost for units of the item in all warehouses or the flat amount you indicate in the Update Return Cost By area in this function. |
oAverage Cost in Warehouse
Select this option to base the new return costs on each item’s average cost in a specific warehouse. The average cost is automatically generated by the system based on the unit costs of the item stored in the specific warehouse.
Example: If the return cost in an item record is US$750.00 and average cost for units of the item in the indicated warehouse is US$850.25. The system will update the cost to US$850.25 plus or minus the percentage of the average cost in the specified warehouse or the flat amount you indicate in the Update Return Cost By area in this function. |
oWarehouse
This field is enabled if you select the Average Cost in Warehouse option. Enter in this field the warehouse that you want the new return cost to base upon. |
oList Price
Select this option to base the new return costs on each item’s sales price indicated in the Unit Price field in the Information page of the inventory item records.
Example: If the return cost in an item record is US$750.00 and its unit price is US$950.00, the system will update the return cost to US$950.00 plus or minus the percentage of the unit price or the flat amount you indicate in the Update Return Cost By area in this function. |
b.In the Update Return Cost By area, specify to apply either a positive/negative percentage rate, or add/subtract a flat amount to/from the new return cost bases to arrive at the updated return costs. To specify a decrease in the existing return cost, precede the rate or amount by a minus (-) sign. Leave the rate or amount at 0.00 to indicate that no percentage will be applied or no flat amount will be added to or subtracted from the new bases.
oPercentage
Select this option to apply a percentage rate to your selected criterion in the Base Standard Cost On area to arrive at the new standard costs of the selected inventory items; then, enter in the adjacent field a positive to be added to or negative percentage rate to be deducted from the new bases.
Example 1: If you want to update the return costs of the items based on the average cost of each item in the “Main” warehouse, you may indicate that each item’s new return cost will be 10.00 % higher than its current average cost in the “Main” warehouse. In this case, an item with a current return cost of US$56.00 and an average cost in the “Main” warehouse of US$48.00 will have its return cost updated to US$52.80 [US$48.00 + (10% x US$48.00)].
Example 2: If you want to update the return costs of the items based on the average cost of each item in the “Main” warehouse, you may indicate that each item’s new return cost will be 15.00 % lower than its current average cost in the “Main” warehouse. In this case, an item with a current return cost of US$75.00 and an average cost in the “Main” warehouse of US$85.00 will have its return cost updated to US$72.25 [US$85.00 – (15% x US$72.25)]. |
oFlat Amount
Select this option to update the return cost of each selected item by adding or subtracting a flat amount to or from the return cost base.
Example 1: If you want the return costs of items to be updated based on their current return costs, you may indicate that each item’s new return cost will be US$12.00 higher than its current return cost. In this case, an item with a current return cost of US$56.00 will have its return cost updated to US$68.00 [US$56.00 + US$12.00].
Example 2: If you want the return costs of items to be updated based on their current return costs, you may indicate that each item’s new return cost will be US$25.00 lower than its current return cost. In this case, an item with a current return cost of US$75.00 will have its return cost updated to US$50.00 [US$75.00 - US$25.00]. |
c.In the Round Return Cost To area, indicate whether the updated return cost of each selected inventory item will be rounded to the next higher, nearest or next lower integer before being applied to the inventory item record and allows you to enter the integer.
oHigher
Select this option to round off decimal places of the updated return cost to the next higher integer. When you enter a value in this field, the system automatically divides the new standard cost base by the value you indicate in this field and rounds off the quotient to the next higher integer. The system will then multiply the higher integer by the value entered in this field. The system does not allow you to enter a zero value in this field.
Example 1: If you enter 0.35 in this field and the new return cost base is US$585.3596, the system will divide US$585.3596 by 0.35. The quotient, US$1,672.4560 (US$585.3596/0.35= US$1,672.4560), will be rounded off by the system to the next higher integer, which is US$1,673.00. The system will then multiply US$1,673.00 by 0.35, the value entered in this field, to get the updated return cost rounded off to the higher integer, which is US$585.55.
Example 2: If you enter 0.60 in this field and the new return cost base is US$796.3468, the system will divide US$796.3468 by 0.60. The quotient, that is US$1,327.2447 (US$796.3468/0.60 = US$1,327.2447), will be rounded off by the system to the next higher integer, which is US$1,328. The system will then multiply US$1,328 by 0.60, the value entered in this field, to get the updated return cost rounded off to the higher integer, which is US$796.80. |
oNearest
Select this option to round off decimal places of the updated return cost to the nearest integer. The system does not accept a zero value in this field.
Example 1: If you enter 0.35 in this field and the new return cost base is US$585.3596, the system will divide US$585.3596 by 0.35. The quotient, US$1,672.4560 (US$585.3596/0.35= US$1,672.4560), will be rounded off by the system to the nearest integer, which is US$1,672.00. The system will then multiply US$1,672.00 by 0.35, the value you indicate in this field, to get the updated return cost rounded off to the nearest integer, which is US$585.20.
Example 2: If you enter 0.60 in this field and the new return cost base is US$796.3468, the system will divide US$796.3468 by 0.60. The quotient, that is US$1,327.2447 (US$796.3468/0.60 = US$1,327.2447), will be rounded off by the system to the next nearest integer, which is US$1,327. The system will then multiply US$1,327 by 0.60, the value entered in this field, to get the updated return cost rounded off to the nearest integer, which is US$796.20. |
oLower
Select this option to round off decimal places of the updated return cost to the lower integer. When you enter a value in this field, the system automatically divides the new return cost base by the value entered in this field and rounds off the quotient to the lower integer. The system will then multiply the lower integer by the value entered in this field. The system does not allow you to enter a zero value in this field.
Example 1: If you enter 0.35 in this field and the new return cost base is US$585.3596, the system will divide US$585.3596 by 0.35. The quotient, US$1,672.4560 (US$585.3596/0.35= US$1,672.4560), will be rounded off by the system to the lower integer, which is US$1,672.00. The system will then multiply US$1,672.00 by 0.35, the value entered in this field, to get the updated return cost rounded off to the lower integer, which is US$585.20.
Example 2: If you enter 0.60 in this field and the new return cost base is US$796.3468, the system will divide US$796.3468 by 0.60. The quotient, that is US$1,327.2447 (US$796.3468/0.60 = US$1,327.2447), will be rounded off by the system to the next lower integer, which is US$1,327. The system will then multiply US$1,327 by 0.60, the value entered in this field, to get the updated return cost rounded off to the lower integer, which is US$796.20. |
5.When you are ready, click the OK button to compute the standard and return costs for the selected inventory items in accordance with the parameters you defined. The Update Item Cost page will automatically display for you to review, amend and save the applicable new standard or return costs.
6.In the Update Item Cost page, enter in the Remarks field a short narrative or description that easily identifies the nature of this transaction.
7.Enter in the Date field the date when you want this transaction to be posted. The default value in this field is the current system date.
8.Review the values displayed in the grid. The following grid columns shows the system's basis in computing the new costs:
oStandard Cost Base
This column displays the basis used to update the standard cost. The values in this column grid depends on the option selected in the Base Standard Cost On area for the highlighted inventory item. |
oReturn Cost Base
This column displays the basis in updating the return cost. The value in this column grid depends on the option selected on the Base Return Cost On area for the highlighted inventory item. |
9.To amend the newly computed standard or return costs, highlight the item; then, amend the values in the Standard Cost or Return Cost field, respectively.
10.To make any change to the item(s) affected or to the parameters you defined for updating the standard or return costs, you may click the Back button to return to the Selection Criteria page; then, make the necessary changes, as applicable. To proceed, perform Step #5 again.
11.When you are ready, click the Save button to save the applicable new standard or return costs; otherwise, click Cancel to discard the changes.
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