Problems with incorrect Rollup Process
Wide unexplained variances...
Gross Margin erosion...
Under or over valued Inventory...
Five Data Checks before running a Cost Rollup Update.
#1 - Check for Routing Operations not set to Update.
Run Standard Routings report (RPRSUM)
Parameter: Cost Not Update
Filter: INRTGS.FCHNGRATES <> 'Y' AND (FPRO_ID,3) <> 'SUB'
Change the Standard Routings (RTG), Operation Detail, to have Chng Rates checked.
SQL Script: UPDATE inrtgs SET fchngrates = 'Y' WHERE fchngrates <> 'Y' AND (fpro_id,3) <> 'SUB'
#2 - Check to see if any of the Item Masters that have a Routing, that the Purchased field is not checked.
Run Standard Routings report (RPRSUM)
Parameter: Routing as Purchased
Filter: INMASTX.FCPURCHASE = 'Y'
Change the Item Master, click off Purchase, or delete the Standard Routing.
#3 - Check to see if any Routings have different quantities from Routing SPQ to Operation Quantity.
Run Standard Routings report (RPRSUM)
Parameter: SPQ & Operation Qty Difference
Filter: INRTGS.FOPERQTY <> INRTGC.FSPQ
Verify the differences are expected or make changes to the Routings.
#4 - Check to see if any Routings with Setup have low Routing SPQ Quantity.
Run Standard Routings report (RPRSUM)
Parameter: Setup with Low SPQ
Filter: INRTGC.FSPQ <= 5 AND INRTGC.FSETUPTIME > 0
Verify the differences are expected or make changes to the Routings.
#5 - Check for Item Master with “Allow Cost Rollup” not checked.
Run Item Master report (RPIMAS)
Parameter: Rolled not checked
Filter: INMASTX.F2COSTCODE <> 'R’ OR INMASTX.FCOSTCODE <> 'R'
Change the Item Master (INV), Cost Tab, to have both Allow Cost Rollup checked.
SQL Script: UPDATE inmastx SET f2costcode = 'R' WHERE f2costcode <> 'R'
SQL Script: UPDATE inmastx SET fcostcode = 'R' WHERE fcostcode <> 'R'
Steps to Perform a Cost Rollup
Select test Purchase Part to verify cost change.
Example:
Update Purchase Parts from Last Cost (CRUP).
Update Current Rolled Cost with Last Actual Cost.
Verify the test Purchased Part Current Rolled Cost changed.
Look at the Item Master Costs in Step 7.
Review Purchased Parts Cost Changes.
Run Item Master report (RPIMAS)
Parameter: Purchased Parts
Filter: INMASTX.FCPURCHASE = 'Y'
Output to Excel file
Review zero cost Items.
Compare the Current Cost to the Standard to look for abnormalities.
Change the Item Master Current Rolled Cost if necessary.
Update the Work Centers with new rates (WORK).
Change Labor Cost / Hour and Ovhd Cost / Hour
Browse Work Centers and send to Excel to verify the change was correct.
Select test routing and part to verify rate and cost change.
Example:
Update Manufactured Parts from by Rolling Up (CRUP).
Update Current Rolled Cost with Roll from Costed BOM
Verify the test Manufactured Part Current Rolled Cost changed.
Look at the Item Master Costs in Step 12.
Review Manufactured Parts Cost Changes.
Run Item Master report (RPIMAS)
Parameter: Not Purchased Parts
Filter: INMASTX.FCPURCHASE <>'Y'
Output to Excel file
Review zero cost Items.
Compare the Current Cost to the Standard to look for abnormalities.
Review Changes to the Inventory Valuation.
Run Item Master report (RPIVAL)
Selection: NS-ALL ITEMS COST DETAILS (Customize report Selection)
Output to Excel file
Update Standard Costs for all Parts (CRUP).
Update Standard Cost with Current Rolled Costs
Review Changes to the Inventory Valuation.
Rerun Item Master report (RPIVAL)
Selection: NS-ALL ITEMS COST DETAILS (Customize report Selection)
Output to Excel file
Verify the update was successful.
Other Items to check.
Floor Stock items and cost.
Purchased parts should not have BOM's.
Phantoms with routings.
BOM Components with Extend not checked.
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