The basic approach in IFP 3.3.0 and later for Maintaining Cost of Sales (COGS) files is as follows:
- Store standard cost information as prices in special summary files.
- Store calculated COGS data in separate summary files.
- Use IFP AutoTasks to manage updating of the above COGS files.
The above approach provides the following advantages:
- A simple model for standard cost values.
- The possibility to store varying standard costs by month for each year.
- Very flexible analysis options are available for COGS and Gross Margin data.
Standard Cost Files
You must create one or more summary files for each year to store actual/forecast standard cost per unit data. It is advisable to use a set of file suffixes which makes these files easy to identify in lists of available files.
Standard costs per unit are stored as prices and may be maintained via normal Forecast Editors.
Recommended options are as follows:
- From IFP Home select Forecasting > Standard Actual/Forecast Editor.
- Select one standard cost file (e.g. 2015 working standard cost file).
- Data to be amended = ASP, Data to be entered = ASP.
- Select the items to enter/amend costs for (excluding discount and other special adjustment codes).
- Level of detail = Item Code + Grand Total (to avoid including sub-totals). Use full consolidation code length.
- You may find it useful to Include Item Codes on the Inclusions tab.
- Select a convenient currency (local or USD).
The following type of grid should then appear.
Note: It is now possible to store separate standard costs per unit for each month in each year.
Cost of Sales Files
You must create one or more summary files for each year to store actual/forecast cost of sales data. It is advisable to use a set of file suffixes which makes these files easy to identify in lists of available files.
The required operations are as follows:
- Copy sales forecast units into relevant COGS file, e.g. CY+1 WKFC (Units only) to CY+1 ZCWRK.
- Copy standard costs per unit as prices in relevant cost of sales file, e.g. CY+1 WKCOG (ASP only) to CY+1 ZCWRK.
See How to Copy from One Data File to Another for how to perform these tasks manually, though it is recommended to automate the process using AutoTasks.
Copy AutoTasks can be created from your selections at the end of the copy process, which can then be combined into a single process using a MultiTask. AJB Systems can also provide a sample of suitable AutoTasks - just contact Support.
Cost of Sales Analyses
Analysis of cost of sales data is best performed using Crosstabulation Analysis.
See Cost of Sales Analysis for details.
Transferring Cost of Sales Data to P&L Databases
The above Cost of Sales modelling process makes it possible to transfer both sales and calculated Cost of Sales data to P&L databases via a single MultiTask. See Running Sales to P&L Database Relationships for further details.