For many companies using standard costs, their version of the system does not deal with all aspects of changes in standard costs. In particular this relates to purchased items.
IMS have developed a utility for several clients that updates standard costs in all designated stockrooms and also creates stock revaluation movements. It is also be possible to exclude certain stockrooms from the process (the standard costs in these will need to be maintained manually).
- When a standard cost is updated, it will replicate this value in all stockrooms where this Item already exists – see exceptions below
- A list will be maintained of stockrooms where standard costs are not maintained
- Where there is any physical stock, it will create a stock revaluation movement with zero quantity but a revaluation amount. AFI can then post this to a revaluation account
The benefits of this new functionality are:
- All standard costs for an item will be in-line and hence will not create any variances when stock is transferred
- Any purchased stock revaluations will be automatically identified and recorded in accounts
- Will save time in data creation
- Procurement in creation
- Accounts creating ad hoc stockrooms when required
- Will save time when stock is re-valued at year end
- Will reduce human errors e.g. incorrect standard costs copied
- No zero standard costs possible
- Will reduce stock variances