Standard Cost Changes (Product Costing and Inventory Accounting)

If new standard costs will be used in the new year, complete the following:

1.   "Freeze" the old standard costs by running the Accounting Cost Generation from the Inventory Accounting Menu. (Note: this step is necessary if it has not been done since the last change in standard costs.)

2.   Update new standard costs for Manufacturing Warehouses by running either the Product Costing Standard Cost Rollup or the Standard Cost Rollover.

3.   Update new standard costs for Distribution Warehouses by keying changes into Warehouse Costs Maintenance (new for version 6.2) found on the Inventory Control Menu.

4.   Run the Accounting Cost Generation from the Inventory Accounting Menu again after the last period of the old year has been final posted and before the first period of the new year is posted.

Note:    As an optional precaution, you may update the latest valid date for accounting costs on Reference File category 454 to the end date of period one of the new year.  This serves as a reminder that new accounting costs should be generated before running any Inventory Accounting reports or end-of-period processing for the new year.

Please refer to the end of this document in the section marked 'Financials' for more information about Inventory Accounting and its use of category 013 and 023.