SWITCHING DYNAMIC3I COSTING METHOD FROM STANDARD OR AVERAGE TO ACTUAL COSTING

As it is desirable to ascertain  the Costing Method of the system at the beginning it is possible to switch between certain types provided specific steps are followed.

Below is the required steps to be done to switch from a Standard or Average Cost system to an Actual Cost system.  Note. Prior to any Costing Method switch it is advisable that your current installation is updated to the latest patched version of DYNAMIC3i. 

Also note that when upgrading from a relatively old version of DYNAMIC3i (which would require SDC’s Customer Service involvement) to the latest version a two phase approach should be followed.

On Existing DYNAMIC3i  Run the following reports:

Phase 1 (Upgrade to Latest Patch Release).

Note.  If you're DYNAMIC3i release is 3.1 or lower
you should contact SDC for assistance.

Pre-Upgrade on DYNAMIC3i (Current/Existing version). Run following reports:

Inventory Value Report          – IN5100
G/L Summary Trial Balance  – GL2300
A/P Summary Trail Balance  – AP3700
A/R Summary Trail Balance  – AR4500

Post-upgrade on latest patch release :

Run ALL above reports and verify data/values are the same.

Phase 2. (Switch to actual costing).

1) VERY IMPORTANT if DYNAMIC3i Manufacturing is being utilized: Confirm and close off any open Manufacturing Production jobs. If job is an ongoing type, than create new jobs as required for any remaining qty.

2) Close of any Open PO’s that have had receipts done against them and perhaps are still waiting further receipts.  If PO is a blanket type PO then enter a new PO for the remaining qty.

3) Close of any Open IWT’s that have had receiving done against them and perhaps are still waiting further receiving.  If IWT still has receiving left to be done then enter a new IWT for the remaining qty.

4) Take care of any negative inventory in the system.  Actual Costing DOES NOT ALLOW Negative inventory.  To do this have your DBA run the statement in a) below.  Adjust the inventory items where required as in b).

a) select warehouse_no, product_no from actcost where qty_on_hand < 0;
b) adjust accordingly so that inventory is NOT negative.

5) Have your DBA Run the following two update statements in sequence:

update actcost set available = decode(sign(qty_on_hand),1,'XX',decode(qty_on_hand,0,'N','Y'));

Note. This update statement will error out with an ORA-12899 error if the database has any products with negative onhand. See 2) above. This would have to be resolved and the update run again.

update actcost set movement_code = '1',

                             document = '1',

                             cost_movement_code = '1',

                             cost_document = '1'
 where movement_code not in (1,5,10,11,15,25,31,35,36,40,45,50,55,60,91,92);

6) Run the Inventory Value Report – IN5100 with ‘Standard Cost’ option.  This will be the Inventory value of your system as it is for “Standard Costing”.

7) Cost Switch - Verify the following System Flags (GB2800) settings:

Cost Flag (under Costing) is set to one of ‘FIFO’ or ‘LIFO’ (Actual Costing)

Disallow Negative Onhand (under Inventory) is selected. 

Under Manufacturing the ‘Sub Job Confirm’ is NOT selected.

8) Log out of SDC and back in and you are now on Actual Costing.

9) Run the Inventory Value Report – IN5100 with ‘Actual Cost’ option and verify the value with the ‘Standard Cost’ report run in step 4) above.  They Should be the same.  If not then contact SDC Customer Support.