Chapter 38: Reviewing Item/SKU Cost History

Purpose: Use the first and second Display Cost Change Audit screens to review changes made to an item or SKU’s cost, whether these changes were made manually or through a system process.

Note: Cost Change Audit records are available for review only if the Track Cost Changes (J69) system control value is set to Y.

In this chapter:

• Creating Cost Change Audit Records

• Tracking FIFO Costing Updates

• Summary of Programs that Update Cost

• First Display Cost Change Audit Screen

• Second Display Cost Change Audit Screen

Creating Cost Change Audit Records

Which cost field is tracked? The system tracks changes to the Cost field on the Change SKU (Base Information) screen for non-SKU’d items, and on the Change SKU - 1 of 2 (With Overrides) screen for SKU’d items. Based on the setting of the Costing Method (A25) system control value, this field is from:

• the Standard cost field in the SKU file if your costing method is STANDARD

• the Average cost field in the SKU file if your costing method is AVERAGE

• the FIFO cost field (weighted average FIFO cost) in the SKU file if your costing method is FIFO

Note: If you use FIFO costing, the system also tracks changes to the cost of any FIFO cost layers. See Tracking FIFO Costing Updates for more information.

Default cost for item not tracked: The default cost in the Item file (the cost on the Create Item Screen and the Change Item Screen) is not tracked in the Cost Change Audit file.

Is initial item or SKU creation tracked? The system does not create a Cost Change Audit record when you first create an item or SKU and set its initial cost; only subsequent changes to the item or SKU’s cost are tracked.

Cost Change Audit records created when? The Costing Method (A25) system control value controls when the system writes a Cost Change Audit record.

Costing Method	Cost Change Audit Records Created When:
STANDARD	You update an item or SKU’s Standard cost through: • item maintenance (option 2 a SKU or for a non-SKU’d item) • the Update Standard Cost option (available when you are working with vendor items) • the Update Standard Cost option (as a separate menu option) • processing a change for an item or SKU through the retail integration (external system to CWDirect) • changing the cost of a finished good item (for example, by changing the cost of one of the components or changing the quantity to use in the finished good)
AVERAGE	You update an item or SKU’s Average cost through: • item maintenance (option 2 a SKU or for a non-SKU’d item) • receiving a purchase order into inventory • placing suspended stock • processing a change for an item or SKU through the retail integration (external system to CWDirect) • changing the cost of a finished good item (for example, by changing the cost of one of the components or changing the quantity to use in the finished good)
FIFO	You convert to FIFO costing You change the cost of a FIFO cost layer at the Change FIFO Cost Layer Screen You update an item or SKU’s FIFO cost in the SKU file (the “weighted FIFO cost”) through: • item maintenance (option 2 a SKU or for a non-SKU’d item) • receiving a purchase order into inventory • placing suspended stock • processing a change for an item or SKU through the retail integration (external system to CWDirect) • changing the cost of a finished good item (for example, by changing the cost of one of the components) • performing any inventory transaction that affects inventory if the item or SKU has more than one FIFO cost layer with different costs Note: The activities above change the FIFO cost in the SKU file only if there are two or more existing FIFO cost layers for the item/SKU, and not all FIFO cost layers have the same cost. See the discussion on Tracking FIFO Costing Updates for more information.

For more information: See the Summary of Programs that Update Cost for a listing of the related programs you might see listed at the First Display Cost Change Audit Screen and Second Display Cost Change Audit Screen.

Tracking FIFO Costing Updates

Two different types of audit records: When you use FIFO costing, inventory activity can create two different types of Cost Change Audit records:

• Change to the FIFO cost field in the SKU file (the Weighted Average FIFO Cost): This type of Cost Change Audit record is created when you process any inventory transaction that causes the system to recalculate the weighted average FIFO cost in the SKU file, which occurs whenever an inventory transaction affects the total on-hand quantity of an item that has two or more FIFO cost layers with different costs. The Second Display Cost Change Audit Screen indicates the Previous FIFO cost in addition to the new Current cost -- which, in this case, refers to the FIFO cost field in the SKU file.

• Change to cost of existing FIFO cost layer: This type of Cost Change Audit Record is created when you use the Change FIFO Cost Layer Screen to change the cost of an existing FIFO cost layer. The Second Display Cost Change Audit Screen indicates the Previous FIFO layer cost, FIFO cost layer sequence #, and FIFO cost layer date in addition to the new Current cost -- which, in this case, refers to the cost for the FIFO cost layer.

Converting to FIFO costing: Converting to FIFO costing from average or standard costing creates:

• a Cost Change Audit record for each warehouse where you keep the item, because the conversion process creates a FIFO cost layer for each Item Warehouse record.

• a Cost Change Audit record for the change to the weighted average FIFO cost in the SKU file

Converting from FIFO costing: Converting from FIFO costing to average or standard costing does not create any Cost Change Audit records.

Which activities generate two audit records? When you transfer any quantity of an item from one warehouse to another, it typically creates two audit records:

• One record indicates the temporary change to the weighted average FIFO cost in the SKU file resulting from the temporary decrease in the total on-hand quantity as the inventory leaves the “from” warehouse

• Another record indicates that the weighted average FIFO cost in the SKU file has been reset to its previous setting after the inventory is added to the “to” warehouse and the total on-hand quantity is restored

Another activity that typically creates two cost change audit records is changing the cost of a FIFO layer at the Change FIFO Cost Layer Screen:

• One record indicates the change to the cost of the FIFO cost layer. This record indicates the Previous FIFO layer cost, FIFO cost layer seq # and the FIFO cost layer date.

• Another record indicates the change to the weighted average FIFO cost in the SKU file. This record indicates the Previous FIFO cost.

Note: If an item/SKU has just a single FIFO cost layer, or if the costs of all FIFO cost layers for the item/SKU are the same, then inventory transactions do not update the weighted average FIFO cost in the SKU file or create the corresponding Cost Change Audit records.

For more information: See FIFO Costing Overview for background.

Summary of Programs that Update Cost

The following table lists some of the programs that can process cost changes which are tracked in the Cost Change Audit file.

Program ID	Program Description	Created When:
INR0359	Change SKU Base Info E1 Edit	You change the cost of a non-SKU’d item at the Change SKU (Base Information) screen (option 2 the item at the Work with Items Screen). The particular cost field in the SKU file updated by this change varies depending on your costing method: Costing method/Updated field: • AVERAGE/SKU Average Cost • STANDARD/SKU Standard Cost • FIFO/SKU FIFO Cost
INR0952	Update & Prt Kit Cost PF Prinm	You: • change the quantity of a component item for a finished good through Entering Finished Goods Information (WFGD) • run the periodic function described under Updating the Cost of a Finished Good, if the cost of any of the component items has changed and you use standard or average costing
INR1267	Change SKU All Info E2 Edit	You change the cost of a SKU’d item at the Change SKU - 1 of 2 (With Overrides) screen (option 2 the SKU at the Work with SKUs Screen)
INR1776	RI Edt/Crt Item ProcessEE Exec	You change the item/SKU’s average, standard, or FIFO cost in the SKU file through Working with Retail Integration Item Upload (RIIU).
MSR0301	Process Inventory Tran EE Exec	You use average costing and you: • receive a purchase order into inventory (see Receiving Purchase Orders (PORC)), or • place suspended stock (see Placing Suspended Stock (SUSP))
POR0007	Work with Vendor Item. DF Disp	You use the Update Standard Cost option for a SKU’d or non-SKU’d item at the Work with Vendor Item Screen within the Working with Vendor Items (WVNI) menu option (the Update Standard Cost option is available only if you use standard costing).
POR0287	W/W Vendor Item by SKU DF Disp	You use the Update Standard Cost option for a SKU’d item at the Work with Vendor Item Screen within item maintenance (the Update Standard Cost option is available only if you use standard costing).
POR0288	W/W Vendor Item by Itm DF Disp	You use the Update Standard Cost option for a non-SKU’d item at the Work with Vendor Item Screen within item maintenance (the Update Standard Cost option is available only if you use standard costing).
POR0463	Update Item Std Cost PF Prin	You use the Updating Standard Cost (MSCC) option (available only if you use standard costing).
Special Programs Related to FIFO Costing Updates
INR1244	Convert FIFO EE Exec	You convert to FIFO costing through Working with FIFO Cost Conversion (WFCV).
INR1246	CHG FIFO Cost E1 Edit	You change the cost of a FIFO cost layer at the Change FIFO Cost Layer Screen. Note: This type of record indicates the Previous FIFO layer cost, FIFO Cost layer seq #, and FIFO Cost layer date.
INR1251	Calc Weight Avg FIFO EE Exec	You process any inventory transaction that results in recalculating the average weighted FIFO cost in the SKU file. This recalculation occurs whenever you have more than one FIFO cost layer with different costs. Example: There are two FIFO cost layers for item AB100: the first has a quantity of 100 at $10.00, and the second has a quantity of 100 at $15.00. The resulting average weighted FIFO cost is $12.50 ($2500/200). You receive a purchase order for an additional 100 units at $10.00. As a result, the weighted average FIFO cost changes to $11.6667 ($3500/300), which creates the INR1251 cost change audit record.

For more information: See:

• the Cost field in the SKU file: Create Item (Base Information) Screen; Create SKU 1 of 2 (With Overrides) Screen

• changing an item or SKU in item maintenance: Working with Existing Items (MITM)

• updating standard cost through vendor item maintenance: Updating Standard Cost

• updating standard cost through a separate menu option: Updating Standard Cost (MSCC)

• updating items and SKU’s through retail integration (external system to CWDirect): Working with Retail Integration Item Upload (RIIU)

• receiving items into inventory: Receiving Inventory

• placing suspended stock: Placing Suspended Stock (SUSP)

• converting to or from FIFO costing: Working with FIFO Cost Conversion (WFCV)

• changing the cost of a FIFO layer: Change FIFO Cost Layer Screen

First Display Cost Change Audit Screen

Purpose: Use this screen to review the Cost Change Audit records created when an item or SKU’s cost was updated, either manually or through a system update.

If no records are listed: If you advance to this screen for an item or SKU and no cost change records are listed, it could be because:

• the Track Cost Changes (J69) system control value is set to N, or

• there has not been any activity to change the item or SKU’s cost.

Note: The system did not write any cost change records before the Track Cost Changes (J69) system control value was introduced in release 11.0.

How to display this screen: Enter 35 next to a non-SKU’d item at the Work with Items Screen, or a SKU at the Work with SKUs Screen.

INR1905 DISPLAY Display Cost Change Audit 6/11/07 11:18:30 LIFO EZK Mail Order Item/SKU . . . : SHORTS GREY SMLL Description . : DRY-WEAVE RUNNING SHORTS SMALL GRAY Opt Date Time User ID Program ID Prev Cost Curr Cost Type options, press Enter. 5=Display 6/08/07 14:49:12 EKAPLAN INR1251 1.7272 1.8571 6/08/07 11:34:32 EKAPLAN INR1251 1.7207 1.7272 6/08/07 11:33:19 KBOTTGER INR1251 1.7272 1.7207 6/08/07 11:31:53 EKAPLAN INR1251 1.6000 1.7272 6/08/07 11:30:52 EKAPLAN INR1251 1.6000 1.6315 6/08/07 11:30:52 EKAPLAN INR1251 1.6315 1.6000 6/08/07 11:29:28 EKAPLAN INR1246 3.0000 + F3=Exit F12=Cancel F21=Print list

Field	Description
Item/SKU	The code identifying the item. If you are reviewing a SKU, the SKU information is to the right. Item: alphanumeric, 12 positions; display-only. SKU: alphanumeric, three 4-position fields (split SKU) or one 14-position field (full SKU); display-only.
Description	The description of the item. Alphanumeric, 40 positions; display-only.
SKU description (unlabeled field below item description)	The description of the SKU. Alphanumeric, 40 positions; display-only.
Date	The date when the change to the cost occurred. Numeric, 6 positions (MM/DD/YY format); optional.
Time	The time when the change to the cost occurred. Numeric, 6 positions (HH:MM:SS); display-only.
User ID	The user ID of the person who made the change, or started the process that made the change. Alphanumeric, 10 positions; optional.
Program ID	The program that changed the cost. See Creating Cost Change Audit Records for more information on the programs that change an item or SKU’s cost. Alphanumeric, 10 positions; display-only.
Prev cost	The cost of the item or SKU, or of the FIFO cost layer, before the change. Depending on your Costing Method (A25), the cost can be from the: • Average cost from the SKU file • Standard cost from the SKU file • FIFO cost from the SKU file (weighted average FIFO cost) • Current FIFO cost from the FIFO Cost file (FIFO cost layer) See Creating Cost Change Audit Records for a discussion. This field is blank if the previous cost was zero. Numeric, 11 positions with a 4-place decimal; display-only.
Curr cost	The cost of the item or SKU, or of the FIFO cost layer, after the change. Depending on your Costing Method (A25), the cost can be the current: • Average cost from the SKU file • Standard cost from the SKU file • FIFO cost from the SKU file (weighted average FIFO cost) • Current FIFO cost from the FIFO Cost file (FIFO cost layer) See Creating Cost Change Audit Records for a discussion. Numeric, 11 positions with a 4-place decimal; display-only.

Second Display Cost Change Audit Screen

Purpose: Use this screen to review the details of a Cost Change Audit record. See Creating Cost Change Audit Records for a discussion.

How to display this screen: Enter 5 next to a record at the First Display Cost Change Audit Screen.

INR1906 DISPLAY Display Cost Change Audit 6/11/07 11:21:18 Sarah`s Fun Shop Item/SKU . . . . . . . . : BRACELET SILVER Description . . . . . . : CELTIC BRAIDED BRACELET STERLING SILVER Date . . . . . . . . . . : 6/08/07 Time . . . . . . . . . . : 10:43:57 User . . . . . . . . . . : EKAPLAN Elise Kaplan Program ID . . . . . . . : MSR0301 Process Inventory Tran EE Exec Current cost . . . . . . : 11.1970 Previous standard cost . : .0000 Previous average cost . : 11.1900 Previous FIFO cost . . . : .0000 Previous FIFO layer cost : .0000 FIFO Cost layer seq # . : 0 FIFO Cost layer date . . : F3=Exit F12=Cancel

Field	Description
Item/SKU	The code identifying the item. If you are reviewing a SKU, the SKU information is to the right. Item: alphanumeric, 12 positions; display-only. SKU: alphanumeric, three 4-position fields (split SKU) or one 14-position field (full SKU); display-only.
Description	The description of the item. Alphanumeric, 40 positions; display-only.
SKU description (unlabeled field below item description)	The description of the SKU. Included only for SKU’d items. Alphanumeric, 40 positions; display-only.
Date	The date when the change to the cost occurred. Numeric, 6 positions (MM/DD/YY format); display-only.
Time	The time when the change to the cost occurred. Numeric, 6 positions (HH:MM:SS); display-only.
User	The user ID of the person who made the change, or started the process that made the change. The user name is to the right. User ID: alphanumeric, 10 positions; display-only. User name: alphanumeric, 30 positions; display-only.
Program ID	The program that processed the cost change. See Summary of Programs that Update Cost for more information. Alphanumeric, 10 positions; display-only.
Current cost	The cost of the item or SKU before the change. Depending on your Costing Method (A25), the cost can be the current: • Average cost from the SKU file • Standard cost from the SKU file • FIFO cost from the SKU file (weighted average FIFO cost) • Current FIFO cost from the FIFO Cost file (FIFO cost layer) See Creating Cost Change Audit Records for a discussion. Numeric, 11 positions with a 4-place decimal; display-only.
Previous standard cost	The Standard cost from the SKU file before making the cost change. The system tracks cost changes using this field only if your costing method is STANDARD. Numeric, 11 positions with a 4-place decimal; display-only.
Previous average cost	The Average cost from the SKU file before making the cost change. The system tracks cost changes using this field only if your costing method is AVERAGE. Numeric, 11 positions with a 4-place decimal; display-only.
Previous FIFO cost	The FIFO cost from the SKU file before making the cost change. The system tracks cost changes using this field only if your costing method is FIFO. See Tracking FIFO Costing Updates for a discussion. Numeric, 11 positions with a 4-place decimal; display-only.
Previous FIFO layer cost	The Cost from the FIFO cost layer before making the cost change, if the Cost Change Audit record refers to a change to a FIFO cost layer. The system tracks cost changes using this field only if your costing method is FIFO. See Tracking FIFO Costing Updates for a discussion. Numeric, 11 positions with a 4-place decimal; display-only.
FIFO cost layer seq #	The unique sequence number of a FIFO cost layer, if the Cost Change Audit record refers to a change to a FIFO cost layer. The system tracks cost changes using this field only if your costing method is FIFO. See Tracking FIFO Costing Updates for a discussion. Numeric, 7 positions; display-only.
FIFO cost layer date	The date when the FIFO cost layer was created, if the Cost Change Audit record refers to a change to a FIFO cost layer. The system tracks cost changes using this field only if your costing method is FIFO. See Tracking FIFO Costing Updates for a discussion. Numeric, 11 positions with a 4-place decimal; display-only.