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  • Greg Borrell

M2M Data Checks and Cost Rollup Process for M2M

Updated: May 28

Problems with incorrect Rollup Process

  • Wide unexplained variances...

  • Gross Margin erosion...

  • Under or over valued Inventory...


Five Data Checks before running a Cost Rollup Update.


#1 - Check for Routing Operations not set to Update.

  • Run Standard Routings report (RPRSUM)

    • Parameter: Cost Not Update

    • Filter: INRTGS.FCHNGRATES <> 'Y' AND (FPRO_ID,3) <> 'SUB'

  • Change the Standard Routings (RTG), Operation Detail, to have Chng Rates checked.

    • SQL Script: UPDATE inrtgs SET fchngrates = 'Y' WHERE fchngrates <> 'Y' AND (fpro_id,3) <> 'SUB'


#2 - Check to see if any of the Item Masters that have a Routing, that the Purchased field is not checked.

  • Run Standard Routings report (RPRSUM)

    • Parameter: Routing as Purchased

    • Filter: INMASTX.FCPURCHASE = 'Y'

  • Change the Item Master, click off Purchase, or delete the Standard Routing.


#3 - Check to see if any Routings have different quantities from Routing SPQ to Operation Quantity.

  • Run Standard Routings report (RPRSUM)

    • Parameter: SPQ & Operation Qty Difference

    • Filter: INRTGS.FOPERQTY <> INRTGC.FSPQ

  • Verify the differences are expected or make changes to the Routings.


#4 - Check to see if any Routings with Setup have low Routing SPQ Quantity.

  • Run Standard Routings report (RPRSUM)

    • Parameter: Setup with Low SPQ

    • Filter: INRTGC.FSPQ <= 5 AND INRTGC.FSETUPTIME > 0

  • Verify the differences are expected or make changes to the Routings.


#5 - Check for Item Master with “Allow Cost Rollup” not checked.

  • Run Item Master report (RPIMAS)

    • Parameter: Rolled not checked

    • Filter: INMASTX.F2COSTCODE <> 'R’ OR INMASTX.FCOSTCODE <> 'R'

  • Change the Item Master (INV), Cost Tab, to have both Allow Cost Rollup checked.

    • SQL Script: UPDATE inmastx SET f2costcode = 'R' WHERE f2costcode <> 'R'

    • SQL Script: UPDATE inmastx SET fcostcode = 'R' WHERE fcostcode <> 'R'


Steps to Perform a Cost Rollup


  • Select test Purchase Part to verify cost change.

    • Example:

M2M Cost Roll Up Example

  • Update Purchase Parts from Last Cost (CRUP).

    • Update Current Rolled Cost with Last Actual Cost.

M2M Cost Roll Up Example

  • Verify the test Purchased Part Current Rolled Cost changed.

    • Look at the Item Master Costs in Step 7.


  • Review Purchased Parts Cost Changes.

    • Run Item Master report (RPIMAS)

      • Parameter: Purchased Parts

      • Filter: INMASTX.FCPURCHASE = 'Y'

      • Output to Excel file

    • Review zero cost Items.

    • Compare the Current Cost to the Standard to look for abnormalities.

    • Change the Item Master Current Rolled Cost if necessary.


  • Update the Work Centers with new rates (WORK).

    • Change Labor Cost / Hour and Ovhd Cost / Hour

    • Browse Work Centers and send to Excel to verify the change was correct.


  • Select test routing and part to verify rate and cost change.

    • Example:

M2M Cost Roll Up Example

  • Update Manufactured Parts from by Rolling Up (CRUP).

    • Update Current Rolled Cost with Roll from Costed BOM

M2M Cost Roll Up Example

  • Verify the test Manufactured Part Current Rolled Cost changed.

    • Look at the Item Master Costs in Step 12.


  • Review Manufactured Parts Cost Changes.

    • Run Item Master report (RPIMAS)

      • Parameter: Not Purchased Parts

      • Filter: INMASTX.FCPURCHASE <>'Y'

      • Output to Excel file

    • Review zero cost Items.

    • Compare the Current Cost to the Standard to look for abnormalities.


  • Review Changes to the Inventory Valuation.

    • Run Item Master report (RPIVAL)

      • Selection: NS-ALL ITEMS COST DETAILS (Customize report Selection)

      • Output to Excel file


  • Update Standard Costs for all Parts (CRUP).

    • Update Standard Cost with Current Rolled Costs

M2M Cost Roll Up Example

  • Review Changes to the Inventory Valuation.

    • Rerun Item Master report (RPIVAL)

      • Selection: NS-ALL ITEMS COST DETAILS (Customize report Selection)

      • Output to Excel file

      • Verify the update was successful.

  • Other Items to check.

    • Floor Stock items and cost.

    • Purchased parts should not have BOM's.

    • Phantoms with routings.

    • BOM Components with Extend not checked.

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