Update Unit Cost

On the production order there’s a function Update unit cost, and also an option to update unit cost on change status. Anyone know what it does, why you want to update the unit cost ( on the production order component ? or on the manufactured item ? ), and whether it works ?

Hi Navicons Did you get an answer. Having had a play it does nothing. I initially adjusted the costs of components, but this did not affect the production order, I then updated the component costs to ensure the parent costs altered, running the update cost again did nothing. This was with a standard costed item.

We use this function, with Specific Costing Method and it does work. The Production BOM can change from time to time with variations. When you check the update cost box, while changing status, the system re-calculates the cost based on the information it has. If the inventory that has been consumed was Pos Adj into Stock, OR the purchase order has been received, and not invoiced, the system doesn’t have enough info to do the calculations as they are based on the Actual Cost, not the Expected Cost. After the P/O’s have been closed out and you run the Adjust Cost Batch Job, you should find that there are some differences. Another way to test this is to Manully change the price of the finished good, then run the function and see the Cost price change.

the Update unit cost function on production order, should update the cost of components having costing method not Standard with the value of Unit Cost from Item card. In this way you could update the expected cost of production order that you can see in the statistic window. Elena

hi friends,

how does UPDATE UNIT COST function works?

Are Adjust Cost - Item Entries on financial, Calc Standard Cost on item and Update Unit Cost on Manufacturing is the same?

No they are not the same, the update unit cost updates the unit cost of the item from the sum of the parts, creating no GL entries. The adjust cost routine posts the differences for a variety of reasons to the ledger and adjusts the cost of the items in stock (or sold).