quote:
Our financial statement (GL) reports the cost of sales based on Actual Cost even if we are using the Standard Cost Method

quote:
BUT THE SR THAT IS DESIGNED FOR THE JOB IS REPORTING THE COST OF SALES BASED ON STANDARD COST THAT IS DIFFERENT COMPARED TO THE ACTUAL COST IN THE GL

Sales Analysis is designed to take the value from the Cost of Sale column on the OE Invoice/CN Audit list. I don't believe it was designed to match the IC Control GL account.

The reason for the Cost Variance account is so that your GL will balance at the end of the day. If the unit cost of your item (from Average Unit Cost) is different than the Cost of Sale, the GL would be out of balance without the Variance making up the difference.

If Sales Analysis were to use Variance in it's cost calculations, the net result would be that it's reading the IC Control Account (AP Clearing) to designate the Cost of Sales. I would argue (and would welcome other's opinions as well) that the Cost of Sale does not necessarily have to equal the IC Control account amount. Otherwise, why would Accpac IC even allow a costing method that would generate different amounts?

Also, Accpac IC has a costing method (User-specified Cost), that allows you to enter ANY value for the cost, and this value gets posted to the Cost of Sale and IC Control accounts. There is no provision for this having to equal the Actual cost based on the Average unit cost. Why would Accpac Plus IC allow this method if it was a requirement for the Cost of Sale to equal the Actual Cost?

Because of the flexibility in choosing from 5 different methods, I think it's important that the correct choice is made when setting up inventory. From the information posted, you really wanted to use the Actual cost for determining the Cost of Sale, for commission calculation and relating to the GL. For this reason, the Moving Average method would have been best for you.

Because of the the issues involved with changing the costing method from Standard Costing to Moving Average, the only other solution I see is to edit the items and set the Standard Cost to equal the Average Unit Cost for each item. That way, the calculated cost of sale will always equal the actual cost. The most efficient way to do this is to import the changes to the Standard Cost field, rather than edit each item individually.

Alternatively, you can use a custom report writer such as Quik Reports, to create a report on the Sales Analysis and IC databases. It would involve calculating the Average Unit Cost for each item (as this is not a stored value in the Accpac IC database), and using this cost rather than the one found in Sales Analysis.

Regards,