Creating standard cost revaluation
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This page enables you to modify the standard cost of a part. Tell me more
Select “Create Standard Cost Revaluation” link under the “Stock Maintenance” business component.
The “Create Standard Cost Revaluation” page appears.
The system displays the following:
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Date Format |
The format in which the date fields are displayed in this page. This format is displayed from the "User Preferences" business component based on the login user ID. In case the format is not defined, the system displays the date format from the “Enterprise Modeling” business component by default. |
The system displays the following in the “Revaluation Information” group box:
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Revaluation # |
A unique number identifying the revaluation document. This number is automatically generated by the system based on the numbering type selected, and displayed at the time of creating the revaluation document. This unique number enables you to trace the revaluation details of standard cost. |
Enter the following:
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Numbering Type |
Use the drop-down list box to specify the numbering type based on which the revaluation document number must be generated. This system lists the numbering types defined in the “Create Numbering Class” activity under the “Document Numbering Class” business component. All the numbering types set for the transaction type “Standard Cost Revaluation” are available for selection. |
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User Status |
Use the drop-down list box to assign a user status for the revaluation document. The system lists the statuses as defined in the “Create Quick Codes” activity. |
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Status |
Use the drop-down list box to assign a status to the revaluation document. The system provides the following options: |
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The system sets status to “Draft” by default. |
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Reference Document # |
The number identifying the reference document for the revaluation (Alphanumeric, 40). |
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Revaluation Category |
Use the drop-down list box to select the category to which the revaluation document belongs. The system lists all the active categories as defined in the “Create Quick Codes” activity. |
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Revaluation date |
The date on which the standard cost of the part is revalued (Date Format). The revaluation date must be earlier than or the same as the system date. The system displays the current system date, if the field is left blank. |
The system displays the following:
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System Date |
The date of the server is displayed. |
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Note: Ensure that the “Costing Usage” is entered for the standard cost revaluation document, if any of the part has the expense type other than “Capital”, or a part with Issue Basis other than “Returnable”. The system displays the following: |
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Base Currency |
The base currency as defined in the “Create Currency Information” activity of the “Enterprise Set Up” business component |
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Enter the following in the “Parts Details” multiline:
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Part # |
The number identifying the part (Alphanumeric, 40). Mandatory. This number must have been defined in the “Create Parts Main Information” activity of the “Part Administration” business component and must be in “Active” status. |
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Help facility available. |
Note: The part number must be unique in the multiline.
Note : Ensure that the Valuation Method of the Part entered is “Standard Cost”
The system displays the following:
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Part Description |
The textual description of the part. |
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Part Type |
The type of the part which could be Component, Consumable, Miscellaneous, Expendable , Raw Material, Tool or kit. |
Note: This part type must be allowed for the revaluation transaction in the “Set Inventory Options” activity of the “Logistics Common Masters” business component.
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Current Standard Cost |
The standard cost of the part as defined in the “Maintain Planning Information” activity of the “Part Administration” business component. |
Enter the following:
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New Standard Cost |
The new standard cost of the part (Decimal). Mandatory. Ensure that the value entered here is greater than zero. This value must not be equal to the “Current Standard Cost”. |
The system displays the following:
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Stock UOM |
The unit of measurement in which the part is stocked. The UOM must be defined in the “Create UOM” activity of the “Unit of Measurement Administration” business component and must be in “Active” status. |
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Current Stock Quantity |
The total quantity of the stock across Organization Units, as maintained in the system. |
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Current Stock Value |
The value of the stock, calculated as |
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Current Stock Quantity * Current Standard Cost |
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New Stock Value |
The new value of the stock, calculated as |
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Current Stock Quantity * New Standard Cost |
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Value Difference |
The difference in value, calculated as |
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New Stock Value – Current Stock Value |
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If the "Value Difference" calculated is negative, the value is displayed with the negative sign. For example, ”- 500”. |
Enter the following:
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Remarks |
Any additional comment pertaining to the standard cost revaluation of the part (Alphanumeric, 255). |
The system displays the following:
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No of Locations Impacted |
Indicates the number of organization units affected due to the standard cost revaluation. |
Note: Ensure atleast one row is entered in the multiline.
Enter the following “Other Details” group:
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User Defined Detail – 1 |
Any other additional details pertaining to the revaluation (Alphanumeric, 25). |
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User Defined Detail – 2 |
Any other additional details pertaining to the revaluation (Alphanumeric, 25). |
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Comments |
Any additional remarks pertaining to revaluation (Alphanumeric, 255). |
Enter the following in the "Attachments" group box:
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File Name |
The name of the file used as document reference for the standard cost revaluation (Alphanumeric, 50). |
Check the box in the “Select” column of the multiline, to select the part number for deletion.
Click the Delete icon in the toolbar above the multiline, to delete the part number selected in the multiline.
Click the “Create Revaluation” pushbutton, to store the revaluation details.
The system updates the status of the stock correction document as “Fresh” or “Draft”.
The system maintains the finance book as defined in the “Account Group” business component, corresponding to the standard cost valuation document.
The system maintains the account code and the cost centre for each of the line item.
To proceed, carry out the following
Select the “Edit Standard Cost Revaluation” link at the bottom of the page, to modify the revaluation document that is already created.
Select the “Maintain References” link at the bottom of the page, to specify the reference document details.
Select “View Value Impact – Stocking Location Wise” link at the bottom of the page, to view the impact of the standard cost revaluation.
Creating standard cost revaluation document – An overview
This page enables you to modify the standard cost of a part whose valuation method is “Standard Cost”. .
You can set the new standard cost for a part number. On clicking the “Create Revaluation” pushbutton, the system displays the current standard cost, current stock quantity, current stock value, the new stock value and the difference between the two values.
Consider the following scenario:
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Current stock quantity |
10 |
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Current Standard cost (Standard Cost) |
20 |
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New Standard Cost |
25 |
Calculation of “Current Stock Value”
Current Stock Value = Current Stock Quantity * Current Standard Cost.
10 * 20 =200
Current stock value = 200
Calculation of “New Stock Value”
New Stock Value = Current Stock Quantity * New Standard Cost.
10 * 25 = 250
New Stock Value = 250
Calculation of Value Difference
Value Difference = New Stock Value - Current Stock Value.
250 – 200 = 50
Value Difference = 50
The “Valuation Method” of the part must be “Standard Cost” in the “Maintain Planning Information” activity of the “Part Administration” business component.