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Wed, April, 3rd 2024
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Jason Holtzman XA User Group
BC:

Forum Question/Topic:

Article:

EPDM and standard costing

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EPDM
AM+

We are in the process of (finally) moving to EPDM and have an accounting question. We use standard costing, where we freeze the standard costs once at the beginning of each year. I know with EPDM, any new revisions need to be recosted, changing and item's cost going forward. This could also affect inventory valuation reports throughout the year. Are there any other companies in our same situation and how have you dealt with this? Thanks in advance.
EPDM
AM+
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Donald McKay
EPDM costing works similar to PDM costing. I have a screenshot that can explain this. I'll email it to you.
Eric Lopez
Thanks for uing the forms @jasonholtzman
Jorge Medina
Jasson, When you execute the cost rollup you obtain a standard unit cost calculated, but it does not affect the valuation of the inventory or the inventory transactions since the unit cost used for these processes is the Default unit cost or the Standard unit cost that is defined in IM for the item/warehouse which can be kept frozen until you decide to change them.
Jason Holtzman
Thanks Jorge for the comment. You answered my question. We are not interfaced between IM and the GL. We make entries based off reports that use the standard unit cost field in the item master, not the item warehouse. I didn't realize there was a standard unit cost at the item warehouse level.

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