Tracy Hanson
Forum Replies Created
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@Lewis_Rosenberg was this recorded and has the recording been posted?
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@Lewis_Rosenberg great question!. I would love to hear what others are doing.
We currently export the 1099 data to excel and file electronically through Yearli. it does require some manual effort to convert from BC report to Yearli required formatting but overall pretty smooth.
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Our BOMs are changing more frequently than they have in the past. I did have an internal meeting yesterday and we do agree that we do not want to reset the cost as there is value in seeing the cost variances that are associated with our bom changes. We are exploring how to make it more visible that its a cost variance vs a consumption variance. a couple manual options have been thrown out but i don’t exactly like those for various reasons. Its back on my plate to explore the powerbi reporting more here.
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@amandamayer the components we are looking at in this scenario are not finished goods. these are mostly subassembly level items that are standard costed. However, we use BOM versions to track changes to the BOM (i.e. we removed a component because it was no longer needed or we changed a component because the original was obsoleted). What we are finding is that our material variances are not true consumption variances, they are now a case of standard cost vs bom version cost – so a cost variance.
The system is not looking at the BOM that we set the standard based on. If you look at our stats window on a prod order, the standard cost = the cost of the bom version that we set the cost at (lets say 1,000). but the expected cost = the cost of the current bom (lets say 1,200). when there are truly no consumption variances (based on the current bom version, not what we set the standard on), the material variance that is being recorded is equal to the standard cost – the expected cost (in the example, it would post 200 unfavorable). In the event that there is a true consumption variance (lets say the cost of that component was 9.00 and it was not used), the system will then post a material variance of 191. Without manually digging into the each production order, there seems to be no visible way to determine if that material variance is a true consumption variance or if it is a cost variance.
what is best practice when using bom versions like this? our policy is to only set our standard costing once a year. but it seems the only way to truly see our consumption variance would be to reset the standard every time. Unless there is a way to tell the system to post cost variances different than consumption variances?
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@SteveChinsky thanks for sharing this. i am not sure this is going to be the answer for us. As a paid subscription is required. i will share the sample data with my team and see if it is enough to warranty trying the free trial. I do think our main issue is the bom versioning as that is what is causing most of the “untraceable” variances as they are not actually consumption based, but truly standard cost based.
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@lewisrosenberg i replied to you on the old site as i was not set up yet on this site. Can you guide me on how to find these “production lines” ? if i look at the finished prod order – entries – item ledger entries, i do not see these columns you noted and i do not see them in the personalization pane either.
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@amandamayer – in this scenario we are using standard costing. We do have some specific costing but those are not being questioned. After i posted this i was able to do some more digging and believe our BOM versions are playing a part in this. The BOM version our standard cost was set at is not the BOM version currently being used in production. I was able to identify in one case where there truly was no consumption variance based on the current active BOM version. The material variance posted to our GL and what showed in our value entries was truly the cost difference between the standard cost and the active BOM version. Our BOM versions change frequently throughout the year but we our policy is to only set costing once a year (with very few exceptions).
