The Standard Cost Worksheet is intended as a tool for purchasers, production managers and internal controllers when they have to review and update their standard costs. This feature makes it possible for the user to
Prepare the changes in advance of the date where they have to take effect
Simulate the effect on the cost of the manufactured item if the standard cost for consumption or capacity usage, for example work or machine centers, is changed
Execute the changes at a given date and let it take effect immediately throughout the system.
The idea is that the purchaser updates and works with the costs of purchased items in one worksheet using the Suggest Item Standard Cost batch job. Once the result is satisfactory, the worksheet is handed over to the internal controller.
Likewise, the production manager updates and works with the capacity costs for the manufactured items in another worksheet – this time using the Suggest Work/Machine Center Standard Cost batch job. This worksheet is also handed over to the internal controller.
The internal controller then consolidates the worksheets into one worksheet, using the Copy Standard Cost Worksheet batch job, makes a roll-up of the costs from the purchaser and the production manager to determine the standard costs of manufactured items. The controller also previews cost changes before and after the roll-up in order to identify unacceptable deviations. Once the updates are acceptable, the internal controller implements the changes – to be effective from a given date.
Implementing the standard cost changes updates the standard costs on the item cards of the items included on the worksheet. It also creates revaluation journal lines so you can update the items in stock with the new standard cost.