Re: [sap-acct] Transport cost for purchased materials in std cost calculation
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 | Posted by Roy B (SAP Financials Expert) on May 22 at 9:50 AM |  Mark as helpful |
It is certainly NOT IFRS compliant and IFRS will eventually replace
all GAAP including US GAAP.
Rgds, Roy
CO-LEAD via sap-acct wrote:
>
>
> I work for a U.S. fortune 500 company and we employ a standard cost
> system which sets a standard cost for all items - raw materials, purchased
> items, manufactured parts and finished goods. Basically, all inventory
> items used in the production of goods for sale. The cost standard for the
> lowest level items (purchased items) are set based on the most current
> representative price from preferred (fixed) vendors and once set, stays
> frozen until the end of our fiscal year. This method of setting standards
> is U.S. GAAP compliant.
>
>
>
>
>
>
>
> Roy B via sap-acct <sap-acct@Groups.ITtoolbox.com>
> Sent on: 05/21/2010 10:41 AM
> Please respond to
> sap-acct@Groups.ITtoolbox.com
>
>
> To
> CO-LEAD <susan.wharton@ct.spx.com>
> cc
>
> Subject
> Re: [sap-acct] Transport cost for purchased materials in std cost
> calculation
>
>
>
>
>
>
>
> Posted by Roy B (SAP Financials Expert)
> on May 21 at 11:39 AM
> Mark as helpful
> Ajay already told you this is wrong. Purchased materials should be
> managed at moving average cost, whether they are resold as is or
> worked on as part of another product. Carrying purchased materials at
> standard is plain wrong, not IFRS or GAAP compliant and your auditors
> should not accept it. Moving average cost includes all costs of
> bringing the materials into the company, such as transport, insurance,
> import duty, handling, demurrage and any other costs incurred up to
> goods receipt.
>
> Rgds, Roy
>
> dcomolli via sap-acct wrote:
>>
>> I have materials purchased and sold, but also materials that are
> component for outwork to obtain a Finished product. All articles are
> managed at std costs and some of them has important transport cost that
> must be included in the stock evaluation.
>> ---------------Original Message---------------
>> From: ajay.maheshwari
>> Sent: Friday, May 21, 2010 10:32 AM
>> Subject: Transport cost for purchased materials in std cost calculation
>>
>>> 1st of all, if the scenario is for a purchased material, why u want to
>
>>> calculate std cost?
>>>
>>> why not u r sticking to Mvg avg price where in u can inventorize the
> freight
>>> component as well by including it as the planned delivery cost
>>>
>>> Ajay
>>
>>
>>
>
--
Roy Brookes AFA, FInstBA,
Senior SAP??? Financials Consultant
Tel: +49 171 268 9635 (mobile)
Tel: +49 40 793 19642 (landline)
Roy.Brookes@Hamburg.de
Roy.Brookes@RoyBrookes.com
RB@Software-Partner-Solutions.com
www.RoyBrookes.com
Director, Software Partner Solutions limited
www.Software-Partner-Solutions.com
www.linkedin.com/in/roybrookes
SAP??? Expert Index Registration: CRF **42819*
__.____._ all GAAP including US GAAP.
Rgds, Roy
CO-LEAD via sap-acct wrote:
>
>
> I work for a U.S. fortune 500 company and we employ a standard cost
> system which sets a standard cost for all items - raw materials, purchased
> items, manufactured parts and finished goods. Basically, all inventory
> items used in the production of goods for sale. The cost standard for the
> lowest level items (purchased items) are set based on the most current
> representative price from preferred (fixed) vendors and once set, stays
> frozen until the end of our fiscal year. This method of setting standards
> is U.S. GAAP compliant.
>
>
>
>
>
>
>
> Roy B via sap-acct <sap-acct@Groups.ITtoolbox.com>
> Sent on: 05/21/2010 10:41 AM
> Please respond to
> sap-acct@Groups.ITtoolbox.com
>
>
> To
> CO-LEAD <susan.wharton@ct.spx.com>
> cc
>
> Subject
> Re: [sap-acct] Transport cost for purchased materials in std cost
> calculation
>
>
>
>
>
>
>
> Posted by Roy B (SAP Financials Expert)
> on May 21 at 11:39 AM
> Mark as helpful
> Ajay already told you this is wrong. Purchased materials should be
> managed at moving average cost, whether they are resold as is or
> worked on as part of another product. Carrying purchased materials at
> standard is plain wrong, not IFRS or GAAP compliant and your auditors
> should not accept it. Moving average cost includes all costs of
> bringing the materials into the company, such as transport, insurance,
> import duty, handling, demurrage and any other costs incurred up to
> goods receipt.
>
> Rgds, Roy
>
> dcomolli via sap-acct wrote:
>>
>> I have materials purchased and sold, but also materials that are
> component for outwork to obtain a Finished product. All articles are
> managed at std costs and some of them has important transport cost that
> must be included in the stock evaluation.
>> ---------------Original Message---------------
>> From: ajay.maheshwari
>> Sent: Friday, May 21, 2010 10:32 AM
>> Subject: Transport cost for purchased materials in std cost calculation
>>
>>> 1st of all, if the scenario is for a purchased material, why u want to
>
>>> calculate std cost?
>>>
>>> why not u r sticking to Mvg avg price where in u can inventorize the
> freight
>>> component as well by including it as the planned delivery cost
>>>
>>> Ajay
>>
>>
>>
>
--
Roy Brookes AFA, FInstBA,
Senior SAP??? Financials Consultant
Tel: +49 171 268 9635 (mobile)
Tel: +49 40 793 19642 (landline)
Roy.Brookes@Hamburg.de
Roy.Brookes@RoyBrookes.com
RB@Software-Partner-Solutions.com
www.RoyBrookes.com
Director, Software Partner Solutions limited
www.Software-Partner-Solutions.com
www.linkedin.com/in/roybrookes
SAP??? Expert Index Registration: CRF **42819*
Copyright © 2010 Toolbox.com and message author.
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Toolbox.com 4343 N. Scottsdale Road Suite 280, Scottsdale, AZ 85251
Roy BSAP Accounting Helper
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