Easy OnBoarding Periodic Costing Set Up Easy onBoarding
Easy On-Boarding Periodic Costing Set Up
Easy on-Boarding Periodic Costing Set Up • Introduction to Periodic Costing • Business Considerations • Periodic Costing Set Up 2
Easy On-Boarding Introduction to Periodic Costing 3
Easy On Boarding Periodic Costing Overview • Cost method for inventory valuation that calculates period item unit costs based on: - Inventory transactions - Shop floor transactions • Uses Cost Calculation formulas: - WAVG – Weighted Average - FIFO – First In First Out - LIFO – Last In First out • Periodic Costing does not substitute, overlap or conflict with current costing methods in QAD solutions – standard or average costing. 4
Easy On Boarding Periodic Costing Overview • Adds new methods of costing calculations that support: - Local legal requirements for certain countries • Brazil, Turkey, Italy • Many countries in Asia, Central Europe & Latin America - International Financial Reporting Standards (IFRS) guidelines - Business practices applied in industries to ensure more accurate inventory valuations for corporate reporting. 5
Easy On Boarding Periodic Costing Features • Functionality to support IFRS requirements • Alternate costing methods • Legal reports for countries with additional reporting requirements e. g. Brazil • Calculates cost of items periodically • Generates GL transactions according to the period costs for all costs • Use of Complete or Adjustment Costing Modes • Used in conjunction with standard costing. 6
Easy On Boarding Business Considerations 7
Easy On Boarding Business Considerations • 2 step validation & correction process. • Periodic inventory revaluation • Complete period costing or standard costing plus adjustment • Adjusted or complete cost modes • Grouping of sites as one for costing purposes • Provision of several types of cost adjustments • Creation of cost adjustment for specific elements • Calculation, storage & reporting generation of item costs in base & statutory currencies for various period. • Periodic Inventory & WIP Valuation 8
Easy On Boarding Concepts • • • Periodic Costing Template Complete and Adjustment Costing Modes Statutory and Base Currency Calculations Costing Methods Cost Calculating Periods Grouped Sites Cost Calculating Labour/Burden Actual Costs Absorption Supplier Invoices Freight, Logistic & Trailer Codes as Material cost Elements • Purchased Items versus Manufactured Items • Period Costing versus Periodic Costing 9
Easy On Boarding Weighted Average (WAVG) - Calculation Average Cost Calculation Unit Cost Calculation 10
Easy On Boarding WAVG Example 11
Easy On Boarding FIFO Theoretical Example 12
Easy On Boarding FIFO QAD Solution 13
Easy On Boarding LIFO Theoretical Example 14
Easy On Boarding LIFO QAD Solution 15
Easy On-Boarding Periodic Costing Set Up Process 16
Easy On-Boarding Periodic Costing Set Up Process 17
Easy On Boarding Domain GL Period Create 18
Easy On Boarding Entity GL Period Modify 19
Easy On Boarding PC Period Maintenance 20
Easy On Boarding Daybook Create 21
Easy On Boarding Cost Set Maintenance 22
Easy On Boarding Cost Element Maintenance 23
Easy On Boarding PC Periodic Cost Set Maintenance 24
Easy On Boarding PC Work Centre Rate Maintenance 25
Easy On Boarding PC Grouped Site Maintenance 26
Easy On Boarding Periodic Costing Initialise 27
Easy On-Boarding Questions? 28
www. qad. com © 2010 QAD Inc 29
- Slides: 29