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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / Future Cost of Purchas...
Microsoft Dynamics GP (Archived)

Future Cost of Purchased Items?

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Posted on by Community Member Microsoft Employee

Currently we are on an ERP that allows us to create a cost type that we designate as a future cost.  We do not need to actually make a purchase or receive an item in order to keep up with this cost.  When we get price changes from our vendors, we'll update this field.  The Future cost of the raw material is then rolled up into the final product, so that we can see what the cost will be with the future prices.  This way we can plan accordingly with our own price lists for our customers.  So at any time we can have the Standard cost, the Past cost, the Current cost and the Future cost.  We deal in oils for our raw materials, so prices can fluctuate rapidly.  We have bought and will be deploying GP2010 on Jan 1, 2011.  I have not found anything in Inventory Management or Purchasing that explains whether or not we can do this in GP.  Any ideas or direction on this one?

 

Thanks

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  • L Vail Profile Picture
    L Vail 65,271 on at
    Re: Re: Re: Re: Re: Re: Re: Re: Re: Future Cost of Purchased Items?

    Thanks Richard! I knew you'd come through!

    Leslie

  • Community Member Profile Picture
    Community Member Microsoft Employee on at
    Re: Re: Re: Re: Re: Re: Re: Re: Re: Future Cost of Purchased Items?

     Great.  I think that's is exactly what I am looking for. Thanks

  • Richard Whaley Profile Picture
    Richard Whaley 25,195 on at
    Re: Re: Re: Re: Re: Re: Re: Re: Future Cost of Purchased Items?

    And the answer is.....

    Tucked away in the manufacturing module, under Cards->Inventory->Std Item Material Costs is a set of Pending Cost fields.  This includes a proposed cost and the effective date of this cost.

    You can enter the future cost of the items in this field.  Standard costs can be rolled up (but do not revalue) using these costs by entering an effective date in the Cost Rollup Process.  You can also use this for significant reporting and analysis.

  • L Vail Profile Picture
    L Vail 65,271 on at
    Re: Re: Re: Re: Re: Re: Re: Future Cost of Purchased Items?

    Hi Squared,

    I'm sorry, I'm going to have to pass on this one. I understand what you need - and it's a very nice function that your current software offers - but I do not know how you would do this in the GP Manufacturing module. Hopefully Richard Whaley will chime in on this one, he knows the Manufacturing module very well.

    Kind regards,

    Leslie

  • Community Member Profile Picture
    Community Member Microsoft Employee on at
    Re: Re: Re: Re: Re: Re: Future Cost of Purchased Items?

    I'm not sure what you are looking for when you ask what process we are running.  What we do is manufacture synthetic oils.  We purchase the raw materials from different chemical companies and then blend those raw materials into a bulk product.  We then take that bulk product and package it into quarts, gallons and drums to make our finished goods.  We have a price from the vendor for the raw material, which is usually what the last receipt was; but they also send us letters and notices telling us of price changes, which we refer to as future cost because we haven't bought it yet as we might have a month or more of stock.  The purchase agent puts those quoted prices into our current ERP (Fourth Shift).  The COO then runs a report that shows how much the cost of materials will be for the finished goods based off of the future cost of raw materials.  He will then create a new price sheet off of those costs.  That is our current process. 

    We do not need to keep our current process when we switch over to GP, but I still need the purchasing agent to be able to populate future cost.  I need to be able to write a customized report or smartlist off of that data, but it will have to be able to show the finished goods costs based off of the future costs of raw materials.

     

    Thanks for your assistance.

  • L Vail Profile Picture
    L Vail 65,271 on at
    Re: Re: Re: Re: Re: Future Cost of Purchased Items?

    Hi,

    When you mention 'raw materials' and 'roll up' I think of manufacturing or BOM. I know how you could do it using BOM, but manufacturing is not my area of expertise. So, what kind of process are you running? To my knowledge, there is not an 'out-of-the-box' solution to your issue. There are some fields you could hi-jack for this purpose, but I would need more information before suggesting a solution.

    Kind regards,

    Leslie

  • Community Member Profile Picture
    Community Member Microsoft Employee on at
    Re: Re: Re: Re: Future Cost of Purchased Items?

     We have purchased both.  We haven't set up our GP yet.  I'm currently using the RTM download to play around and learn the system.

  • L Vail Profile Picture
    L Vail 65,271 on at
    Re: Re: Re: Future Cost of Purchased Items?

    Hi,

    Are you using the Manufacturing or the Bill of Materials module?

    Kind regards,

    Leslie

  • Community Member Profile Picture
    Community Member Microsoft Employee on at
    Re: Re: Future Cost of Purchased Items?

     yes.  we get a price update from our vendor for the raw material that we use.  we plug that price into the future cost field, which is the rolled up into the material cost of the final product.  that way we can see how the raw material price change effects the final product.  so in essence, we are projecting material costs.

  • L Vail Profile Picture
    L Vail 65,271 on at
    Re: Future Cost of Purchased Items?
    Hi!, If I am understanding this correctly (giant leap there), you are looking at these future costs numbers to be used in projections? Kind Regards, Leslie

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