MC Best Practices and Tips: Cost Rules

Previously we’ve discussed the basics about cost rules and provided instructions to set up cost rules to ensure material costs are calculating as intended when managing parts. In this post, we’ll dig beyond the basics and show you the most commonly used cost rules organizations prefer to use to document costs using a consistent method. 

MOST COMMONLY USED COST RULES

Most organizations prefer to document costs using a consistent method. The most common methods to use are Last Cost and Average Cost since these are dynamically populated as you receive parts on Purchase Orders. A definition of the most common used cost rules are below.

 

Average Cost – The average cost, calculated by Maintenance Connection based on the average of all completed Purchase Orders for this item

Last Cost – The cost recorded for this item on the last completed Purchase Order

Nightly scripts can be run to perform these cost rules. When set up properly, these will ensure the following actions are completed:

• Updates the Inventory item details page and Stockroom Location to match your preferred costing method (Last Or Average)
• Sets the Standard cost which first displays on WOs to match the costing method value to eliminate pre-save confusion
• Ensures check box to “Apply to all Stock Rooms” is enabled for all Inventory Items
• Enables all “Auto Update Procedures” fields on Inventory Items and aligns chosen costing method

Customers who would like to run scripts for these cost rules may click here and visit the MCUC to download and install them.