Inventory Average Cost

SUGGESTED

We have a number of inventory items which utilize standard cost as the valuation method.  Due to a number of reasons, the average cost fields in the CI_Item and IM_ItemCost tables are way off.  The system utilizes the standard cost when posting to the GL, but the tables show extended valuation at the quantity times the average cost. 

 

How do we reset average cost and is there a utility to run monthly to clear this problem out?

  • 0

    If you are on the new business framework for Inventory Management, you will have to import new values into the Average Cost fields.

  • 0 in reply to Bob Pfahnl

    We are using Sage 100 V4.50

  • 0 in reply to WadeB

    What specific problem(s) is this causing?  From an accounting standpoint (although I am not an accountant)  I believe MAS is still using Standard Cost to receive goods into inventory (for valuation and in Sales for COGS purposes), with the variance between Standard Cost and either the build cost (from a Production Entry) or purchase cost (from a Receipt of Goods Entry) going to the manufacturing or purchasing variance accounts respectively.  If it's a reporting issue, the extended cost at Standard Cost can be calculated in the report.

  • 0

    If the Item has a valuation of Standard then the values you see in Average Cost if informational only.

  • 0 in reply to BigLouie

    I agree from a pure accounting standpoint, these numbers are not used for anything.  But the tables are incorrect, and currently hold numbers that are huge.  Average costs into the billions of dollars.  It looks weird when one views an item in inquiry and if we try to utilize these fields in a crystal report nothing will match.  Informational or not, Sage should have a fix to make the table correct.

    Is there any utility that I can run to correct these fields?

  • 0 in reply to WadeB

    If you ship before receipts (making a negative on hand quantity) this value becomes corrupted.

  • 0

    You may want to test in a test company, but I don't think negative quantity (over-distribution) of a Standard Cost item will create the issue you describe.  You can look at the KB article on Cost Hierarchy ("What is the item cost hierarchy in Sage MAS 90 and 200" - Resolution ID 638) and work the mechanics.  You may also want to have a look at Resolution ID 425322 if the average costs are significantly incorrect coming into the PO - although again, they should typically reflect the anticipated actual cost which is often different and must be entered manually anyway.  Finally, Resolution ID 401110 might offer a solution - again, test the resolution in a test company.  If the resolution works, you could extract, manipulate, and use VI to import transactions to facilitate the process (monthly) if needed.  Hope some of this helps.

  • 0 in reply to T-Storm
    SUGGESTED

    Hello WadeB,

    Can you please Email Sage Support at [email protected] with your Sage Customer Account number and put "Attn: Long Nguyen" on the subject of the email.  I will take a look at this issue.  

    Thank you,

    Long Nguyen

    Sage 100 ERP Support Analyst.