Create & Authorize Std. Cost Revaluation
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This page allows you to create and authorize a standard cost revaluation transaction. Tell me more
Select the “Create & Authorize Std. Cost Revaluation” link under the “Stock Adjustments” business component
The “Create & Authorize Std. Cost Revaluation” page appears.
Enter the following:
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Transaction No. |
A unique number identifying the standard cost revaluation transaction (Alphanumeric, 18). Mandatory. |
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Numbering Type |
Use the drop-down list box to select a numbering type for generating the transaction number of the standard cost revaluation transaction. All the numbering types defined in the “Create Numbering Type” activity of the “Numbering Class” component for the standard cost revaluation transaction and valid after the last closed financial period will be displayed here. The numbering type set as default for this transaction type will be displayed here by default. |
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Transaction Date |
The date on which the standard cost revaluation transaction took place (Date Format). Mandatory. Ensure that this date is not greater than the current system date and the last closed financial period. The system sets this date to the current system date by default. |
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Ref. Doc. No. |
The number identifying the reference document based on which the transaction is recorded. (Alphanumeric, 18). |
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Ref. Doc. Source Point |
The location or organizational unit from where the reference document has been raised (Alphanumeric, 16). |
Enter the following in the “Default Entries” group box:
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Usage For A/C Code |
Use the drop-down list box to select the account code to be credited for the value of the item corrected through the standard cost revaluation transaction. All the account codes defined for the standard cost revaluation transaction type in the “Account Rule Definition” component will be displayed here. The system also displays “Blank” as one of the values and sets this field blank by default. |
Note: If the account code is not mapped to any cost center, then the usage for usage cost center must be blank. If the account code is mapped to even one of the cost centers, the usage for cost center must be retrieved from the “Cost Center Rule Definition” component.
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Usage For CC |
Use the drop-down list box to select the cost center for the standard cost revaluation transaction. All the cost centers defined for the standard cost revaluation transaction type in the “Cost Center Rule Definition” component will be displayed here. The system also displays “Blank” as one of the values and sets this field blank by default. |
Enter the following in the “Item Information” multiline:
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Item Code |
The unique code identifying the item (Alphanumeric, 32). Mandatory. Help facility available. |
Note: If the item is of non-stockable type such as capital, model, kit, service or reference item or if the item type is not allowed in the specified warehouse, then the standard cost revaluation transaction cannot be generated. For sundry item types, the item/variant must be stockable. Else, the system displays an error message.
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Variant Code |
Variant code of the item (Alphanumeric, 8). Ensure that the variant code is entered if the item is variant enabled. Help facility available. |
The system displays the following in the “Item Information” multiline:
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Item Variant Desc. |
A textual description of the item variant. |
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Current Std. Cost |
The standard cost of the item as defined in the “Maintain Item – Basic Information” activity of the “Item Administration” component. |
Enter the following in the “Item Information” multiline:
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New Std. Cost |
The new standard cost of the item (decimal). Mandatory. Ensure that the value entered in this field is greater than zero. This value must not be equal to the current standard cost. |
The system displays the following in the “Item Information” multiline:
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Stock UOM |
The unit of measurement in which the item is stocked in the warehouse. |
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Current Stock Qty. |
The total quantity of stock available across all the warehouses in an OU. The system retrieves the total quantity of stock available in all the non-capital warehouses for the login OU. The system retrieves the stock details only for those items for which the “Valuated” parameter is set. |
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Current Stock Value |
The value of the stock, calculated as the product of current stock quantity and current standard cost. |
Note: If the costing method of the items is other than standard cost, then the system retrieves the value of the stock from the “Stock Maintenance” component for the item variant in the login OU and displays it in the current stock value field.
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New Stock Value |
The revised value of the stock, calculated as the product of current stock quantity and new standard cost. If the costing method is other than standard cost, then new stock value will be the same as the current stock value. |
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Diff. In Value |
The difference in value, calculated as the difference between new stock value and current stock value. If the difference in value is obtained as negative after calculation, the system displays the value preceded by a minus or negative sign. |
Note: If the difference in value is positive, then the transaction type will be positive std. cost revaluation (SCR). If the difference in value is negative, then the transaction type will be negative (SCR).
Enter the following in the “Item Information” multiline:
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Usage For A/C Code |
Use the drop-down list box to select the account code to be credited for the value of the item corrected through the standard cost revaluation transaction. All the account codes defined for the standard cost revaluation transaction type in the “Account Rule Definition” component will be displayed here. The system displays the value as chosen in the header in all the rows of the multiline by default. |
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Usage For CC |
Use the drop-down list box to select the cost center for the standard cost revaluation transaction. All the cost centers defined for the standard cost revaluation transaction type in the “Cost Center Rule Definition” component will be displayed here. The system displays the value as chosen in the header in all the rows of the multiline by default. |
Check the “Select” column in the multiline for viewing item details, creating financial information, attaching notes, modifying std. cost revaluation and inquiring stock information for OUs.
Click the “Create Std. Cost Revaluation” pushbutton to create the standard cost revaluation transaction.
Click the “Create And Authorize Std. Cost Revaluation” pushbutton to create and authorize the standard cost revaluation transaction.
The system sets the transaction as “Authorized”. The system saves the details in login id of the user and the date of creation along with the modification details. If the standard cost revaluation is positive, the system debits the stock account and credits the revaluation account or adjustment account depending on whether the “Std. cost revaluation based on revaluation account” is set as “Yes” or “No”. If the standard cost revaluation is negative, the system credits the stock account and debits the revaluation account or adjustment account depending on whether the “Std. cost revaluation based on revaluation account” is set as “Yes” or “No”.
The system checks whether the system parameter "Prevent Transactions during Period Closing" is set as “Yes”. If so, transactions must be recorded for the closed financial period. Else, the system displays an error message.
The system adjusts the new stock value in the finance book to which the warehouse is associated. If more than one warehouse is associated with the finance book, then the system calculates the sum of all stock values for the warehouses and adjusts the cumulative value in the finance book.
The system updates the new standard cost of the item variant in the “Item Administration” component with which the “Stock Adjustment” component is interacting.
The system displays the following:
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Created By |
The login id of the person who created the standard cost revaluation transaction. |
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Created Date |
The date on which the standard cost revaluation transaction was created. |
To proceed, carry out the following
Select the “View Item Details” link at the bottom of the page to view details of items.
Select “Financial Information” link at the bottom of the page to create the financial information for the std. cost revaluation transaction.
Select “Attach Notes” link at the bottom of the page to attach notes for the standard cost revaluation transaction.
Select the “Edit Std. Cost Revaluation” link at the bottom of the page to modify the standard cost revaluation transaction.
Select the “Create Lot Information” link at the bottom of the page to create and modify lot related information.
Select the “View Stock for Stocking Point” link at the bottom of the page to query the OU stock details.
Create and Authorize Standard Cost Revaluation – An Overview
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Stock adjustment is performed when there is a discrepancy between the system stock and actual physical stock and the reason for the discrepancy cannot be ascertained. This page allows you to modify the standard cost for items with std. cost valuation method. However, this page is applicable for all items irrespective of costing methods but for standard cost items, the stock value will be adjusted to the new stock value after revaluation and necessary financial postings will be performed.
You can create standard cost revaluation transaction based on a reference document. You can specify the new standard cost for the item. This value will be applicable throughout the OU. The system calculates the new stock value as the product of new standard cost and quantity. You also need to specify the account code and cost center to be credited for the standard cost revaluation transaction. This is best illustrated in the form of the following example.
Consider the following scenario:
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Current stock quantity |
10 |
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Current Standard cost (Standard Cost) |
20 |
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New Standard Cost |
25 |
Calculation of “Current Stock Value”
Current Stock Value = Current Stock Quantity * Current Standard Cost.
10 * 20 =200
Current stock value = 200
Calculation of “New Stock Value”
New Stock Value = Current Stock Quantity * New Standard Cost.
10 * 25 = 250
New Stock Value = 250
Calculation of Value Difference
Value Difference = New Stock Value - Current Stock Value.
250 – 200 = 50
Value Difference = 50
Standard cost revaluation transaction can be created and authorized based on the permissions granted to the user. The user must have the requisite “Authorize” permissions to authorize the std. cost revaluation transaction. This page is launched only if the system parameter “Inventory revaluation required from inventory screen” is set as “Yes”. Else, the system displays an error message.
