The Standard Cost is used as a variable in reporting, the bill of material Cost Rollup and can be assigned as the costing method in the Item Type setup. Pilot ERP does not automatically update the standard cost as it does with the weighted average cost or last cost. Users must determine when and how the standard cost is updated using the methods below.
The Standard Cost for purchased items can be manually updated rough the item card or you can mass update the cost using the Manufacturing - Bill of Materials (BOM) - Cost Update utility. This utility will allow you to select a range of items and select from the following options to update the current standard cost:
Update standard cost with item's current:
- Weighted Avg. Cost
- Last Cost
- Standard Cost (with % increase/decrease)
To recalculate a manufactured item’s Standard Cost, you must use the BOM – Cost Rollup screen. This will calculate the cost of the manufactured item using the current Bill of Materials (standard cost) and the labor routings. The cost rollup will automatically update the standard cost field of the manufactured item.
BOM Cost Rollup:
If you want to see the new calculated standard costs before updating the items, check the "Preview Cost Rollup" option and after clicking next, a second screen will display showing the current standard cost and new calculated cost. You can then select which items you want to update and click the save button to complete the cost rollup and update of the standard cost.
The Cost Rollup Preview screen results can be exported to Excel.