Using Cost Details for Purchased Parts—Exercises
IMPORTANT |
It is extremely important that you set up and work within your
own company to maintain your data integrity. If you work within any
other company, your exercises will not function as intended and the data
of other students might be affected. Predictable exercise results
require that your data is isolated in your own company. |
Basic Data Setup
Enter Basic Data for Cost Details
Purpose: The purpose of this exercise is to set up the
basic data to get the cost details to work.
Windows:
Inventory Basic Data
Cost Details Basic Data
Modify Posting Cost Group
- Enter commodity group XXSMP with description Sheet Metal Parts and group
XXMISC with description Miscellaneous Parts (replace
XX with your initials).
- Enter cost source XXS1 with description Sheet Metal Parts
and cost source XXM1 with description Miscellaneous Parts (replace
XX with your initials).
- Make sure that Commodity Group 2 is used as cost source indicator for
purchased material.
- Connect commodity group XXSMP with cost source XXS1 and XXMISC with
XXM1.
- Enter posting cost group XXM with description Material (replace
XX with your initials).
- Connect posting cost group XXM to cost bucket 110 - Estimated Material
Cost.
General exercise for
Commodity Groups
General exercise for
Setting up Cost Sources
General exercise for
Setting up Posting Cost
Groups
Create Purchased Inventory Part
Purpose: The purpose of this exercise is to create a
purchased inventory part to be used in the main exercise.
Windows:
Inventory Part
Supplier for Purchase Part
- Open the
Inventory Part window.
- Create Steering Axle as an inventory part, and give it the part number
XX99-009 (replace XX with your initials). Enter Purchased as the part type
and connect the commodity group XXSMP to comm. group 2.
- Create Steering Wheel as an inventory part, and give it the part number
XX99-010 (replace XX with your initials). Enter Purchased as the part type
and connect the commodity group XXMISC to comm. group 2.
- In the
Inventory Part/Misc Part Info tab, select Weighted
Average as the inventory valuation method, and Cost per Part as the cost
level for both parts.
- Connect the parts to supplier 5000 in the
Supplier for Purchase
Part window.
General exercise for
Creating Purchased Inventory Part
General exercise for
Connecting Supplier to Purchase Part
Main Exercise
Purpose: The purpose of this lesson is to learn how the
cost details are built up for purchased parts.
Windows:
Purchase Order
Register Purchase Order Arrivals
Inventory Part
Inventory Part Unit Cost
Inventory Transaction History
Cost Details for Purchased Parts
- Open the
Purchase Order window, and create a purchase order
for 100 units of part XX99-009 and 100 units XX99-010 for supplier 5000.
Release the order.
- Open the
Register Purchase Order Arrivals window, and
register the arrival of the purchase order.
-
Open the
Inventory Part.
Query for part XX99-009 and XX99-010, and study the values in the
Cost/Inventory
Value tab. Select the line in the table and right-click and then
click Cost Details. Study the values in the
Inventory Part Unit Cost window for both parts.
- Open the
Inventory Transaction History window, and
query for part number XX99-009 and XX99-010. Study the values in the
Cost Details tab and the postings in the
Accounting
tab.
Note: Both the posting cost
group and cost source are control types in the posting control and could be used
to control the financial postings.