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Use this form to convert the inventory model for a batch of selected items from an actual costing basis to standard cost. Several prerequisites must be completed before using the form, and the conversion process requires multiple steps, as described in separate Help topics. In summary, use the form to create a conversion record that also contains a user-defined identifier for a new costing version. You identify the items that require conversion and enter the item's pending standard costs within the newly created costing version. You perform a check of the selected items to identify issues that would prevent conversion, and then resolve the issues before performing another check. After the items have successfully passed the checks, you change the status of the conversion record to ready, and perform the conversion process. The conversion process can optionally include an inventory close. After successful completion of the conversion process, each item will have a standard cost inventory model and standard costs so that subsequent inventory transactions will be valued at the item's standard cost.

Examples

A distribution company wanted to change the inventory valuation method from last in, first out (LIFO) to standard cost for several items. The company defined a standard cost conversion record (along with the identifier for a new costing version), identified the selected items that required conversion, and entered a pending standard cost for each item. The company checked the items by using the report, which indicated several issues in converting the selected items to standard cost. The issues were resolved, the items were checked again, and the report did not indicate any issues. The company changed the status of the conversion record to ready, and executed the conversion. The conversion process updated each item's inventory model and activated each item's standard cost.

Navigating the form

The following tables provide descriptions for the controls in this form.

Tabs

Tab

Description

Create a new conversion record, or edit and view existing conversion records. Creating a new conversion record will also create a new costing version, where the costing version reflects the user-specified identifier in the conversion record.

Edit or view the information for a selected conversion record.

Set up, edit, or view the items that require conversion to a standard cost inventory model.

Edit or view the information for a selected item that requires conversion to a standard cost inventory model.

Buttons

Button

Description

Open a menu with the following items:

  • – Change the conversion record status to after all items have been checked so that you can convert the selected items to a standard cost inventory model. Every item must have a status, and an inventory close transaction must exist for a date that is one day prior to the transition start date, before you can change status to .

  • – Change the status of a conversion record to .

Use the report to identify issues that would prevent converting the selected items to a standard cost inventory model.

Use the form to view or edit the costing version for the selected conversion record. The costing version is dedicated to the conversion record until the conversion has been completed, at which time it acts like any other costing version for standard costs.

Convert the selected items to a standard cost inventory model, and optionally activate the pending costs for each item. The status of the conversion record must be or before you can run the conversion process. If applicable, the system asks if you want to perform an inventory close as part of the conversion process.

Use the form to set up, edit, or view the pending cost of the selected item, or to calculate the pending cost of the selected manufactured item.

Add items to the list of items for the selected conversion record.

Fields

Field

Description

Enter the identifier of a new conversion record, or view an existing identifier.

Enter or view the planned transition start date for the conversion record.

Enter or view the planned conversion date for the conversion record, or view the actual conversion date of the conversion record.

Enter a new user-defined costing version identifier when creating a new conversion record, or view the costing version identifier for an existing conversion record. Creation of a new costing record also creates a new costing version with the user-defined identifier.

View the status of the conversion record. The status can be:

  • – A conversion record is initially assigned a status, and information can be edited.

  • – Change the status to after checking for issues and resolving the issues that would prevent conversion to a standard cost inventory model. The selected items must have a status, and an inventory close must exist for a date that is one day prior to the transition start date. Information within the conversion record cannot be edited when the status is , so you must undo the status (to ) to enter changes.

  • – An status is automatically assigned after you have initiated the conversion process when one or more items have not been successfully converted. The conversion process can be run again after you resolve the issues or delete the unconverted items.

  • – The status automatically changes to after the conversion process has been successfully completed.

Select or view a standard cost inventory model group that will act as the default value for each item that is associated with the conversion record.

Select or view an item that requires conversion to a standard cost inventory model.

Show whether the item is purchased (item type of item) or manufactured (item type of BOM). The pending costs for a manufactured item can be calculated based on its bill of material (BOM), routing, and indirect cost information.

Show the item's policy about maintaining costs when item dimensions include color, size, or configuration. You enter a single cost for the item when the check box is cleared, or separate costs for each combination of item dimensions when the check box is checked.

View the status of the item that is associated with a conversion record. The status can be:

  • – An item is initially assigned a status when it is added to the conversion record. The system can change the status from back to when the checking process identifies a problem.

  • – The status can be automatically changed to when the checking process does not identify problems for the item.

  • – The status automatically changes to converted after you perform a conversion of the items.

Select or view the standard cost inventory model group that will be assigned to the item after converting the items to standard cost. The initial value reflects the default model group that is assigned to the conversion record.

View the item's previously assigned inventory model group, which is displayed after converting the item to a standard cost inventory model. The previous model group is displayed for historical purposes.

View the date and time that the item was converted to a standard cost inventory model.

See Also