For no reason I can figure out, DBA sometimes posts an Invoice using Standard Cost instead of Average. At least I think that's what's happening. I noticed it because we had one item with a really bad Standard Cost (had a lot size of 0 instead of 2000) and the Standard Cost was more than 100 times what it should have been. The quarter million plus dollars change in Book Value lead me to it pretty quickly...
 
I have since noticed other items posting a 0 (which is the Standard Cost on them as none has been established). These are manufactured, to-stock items. Nothing unusual about them. No kit components, no WO made from the SO. Just basic make-to-stock and then ship some day.
 
This item had no Standard Cost, and then the SC was updated to the bad one. You can see some legitimate transactions, and then some illegitimate (?) ones.
 

It appears that DBA was written with Standard Cost in mind, and average was added on later, almost as an afterthought.  For example you can rollup at standard cost, but not average.   IN-C can screw up your average costs it you're not careful.  
  If you are using Average Costing, why should Standard costing even be maintained/used by the program?

I meant the Sales Order. The WOs seem to be doing fine.

Quote from Vman on 02/06/08 at 15:10:33:

 
The two are separate concepts. Think of the three costs as past, present, and future: Last Cost is the past, what it cost the last time. Actual cost is the present, what is the value/cost of a current item in stock. Standard Cost should be a good estimate of the cost of the next item you build. If you use IN-L-E to update your standards costs for purchased items from Average, then run BM-G to roll up your standard costs for products, then you have effectively rolled up average costs. By the same token, using IN-L-E to set standard to Last cost, followed by BM-G, you'd see a different Standard cost result. We use IN-L-E with average cost because we do not purchase parts to specific orders and our material costs fluctuate quite a bit. We run IN-L-E followed by BM-G every weekend. It makes a difference.

Thanks for adding the UOH qtys.  
 
I thought there was a golden rule of DBA/EVO not to process shipments without sufficient qty in inventory to support the shipment - as this would result in unusual COGS costing?  
 
My first response would support the $0 costing for the 12/12, 1/7 & 1/18 shipments.  If UOH goes negative or exceeds the WO receipts, DBA runs home to mama and put $0 in COGS.  However, I am stumped by 2/4 shipment COGS.
 
Our daily process (in this order) is to enter labor hours to work orders, enter finished production (WO-I) and then prepare invoices, first verifying qty on hand will support the shipment.  We have been successful since we adopted this process in obtaining normal costing thru EVO.  We employ average costing.
 
Linda

Quote from GasGiant on 02/07/08 at 07:35:39:

 
As I understand the concept of standard costs, they are usually calulated yearly or semi-yearly, and involve quite a bit of work to do them correctly (such as communicating with vendors to get an idea on price increases, etc.)  We have used the IN-L-E and BM-G procedure here, but it seems that what you are doing is using the Standard Cost programs to do what you can't do directly with average cost. This does give you a place holder of sorts for your last good rollup.  Of course with anything like this garbage in=garbage out.  If your average costs get hosed, you can then hose the standard cost with the update/rollup.
 
   If you use IN-C to do an negative adjustment, the Use STD Cost? selection is set to N and not changeable.  I am not sure why that is.  
 

Quote from lmk223a on 02/07/08 at 13:18:01:

 
That's almost exactly what we do, except we print the Invoice on the date of shipment, The next AM we make sure any non-entered materials and labor are issued, enter fin prod (if not an SO-N order) and then do the Invoice Posting.
 
You would often have "negative on hand" in the interim using this method, except that DBA does not actually create the inventory transaction for the shipment until the invoice posts.

Quote from Vman on 02/07/08 at 13:00:12:

 
Because many of our raw materials are commodities, like platinum, we tend to watch our costs closely. In order to project margins and keep them in line, we need to rerun standard cost often. I suppose that if your costs don't change very often then you'd only need to refigure your standard costs once in a year. A job shop would need to refigure costs before every quote. The Sequence of Events section of the help says to run IN-L-E and BM-G as needed. Neither is mentioned in month-end or year-end accounting. Some businesses adjust their prices every year or two, others set prices by the job. Obviously, we have different material accounting needs because of this variation.
 
I'll also mention that if you do not keep your standard costs up-to-date, your Variance account will inflate as time passes. By keeping our standards up-to-date our variances are minimal and we really notice when something goes haywire with costs because we see a blip in the variance account. If your costs don't vary wildly then you could use the variance account to track the gradual change and know when it is time to update pricing.  
 
Quote from Vman on 02/07/08 at 13:00:12:

 
As mentioned above, that is backward. From the help file: "If you are entering a negative adjustment, the current average cost is used and you are not allowed to change it. "