Use Cost Discrepancy Entry (ICE610) to identify and correct receipt documents that have been updated with the wrong cost. The receipt record (ICRCPT) will be updated immediately so that any further disbursements of that receipt will be at the correct cost. The General Ledger is updated when the Cost Discrepancy Register is run.
Note that you must have appropriate cost security assigned in either IC Static Control F/M or on the Cost Discrepancy Entry program itself to access this program.
Some examples of cost discrepancies are:
Existing records in the cost discrepancy file will not be editable again. The update process occurs in this entry program so the records cannot be changed after that. This processing is similar to the Adjustment Entry (ICE210) program.
Pre-register PO Receipts and Adjustments
For PO receipts that have been updated but not yet run through the PO Receipt Register, a message is displayed and cost discrepancy entry is not allowed.
Adjustment records are not displayed in Cost Discrepancy Entry browser if they have not been processed through the Adjustment Register.
Disbursements
You can highlight a line in the browser and click Disbursements to drill down to the source document if the appropriate inquiry program is available.
Verifying Receipts
Click Verify Receipts to check all cost discrepancy records currently on file for their matching receipt. If not found, the cost discrepancy record is removed. At least one cost discrepancy record is required to enable the button.
Cost factoring
When using cost factoring, the current and new unit costs are the same because the cost is factored across units. In the browser, the Factored Unit Cost column contains the factored cost that is applied during the register when no cost change is visible.
In the Cost Factoring section, the total cost amount to factor for the document and memo are displayed. Specify the factor type: by weight, cost or units. You can optionally specify the Offset GL account to use an alternate GL Offset account (offset to Inventory) for factored cost. For certain document types, the GL Inventory and Offset accounts will not be available. These entries are allowed, but the register will only update the receipt and disbursement costs since the GL accounts are not known.
In the browser, all of inventory lines for the selected document are displayed. For Adjustments and Warehouse documents, a single line is displayed in the browser; you cannot specify cost factoring information.
When a cost factoring value is specified, click Update Cost to calculate the unit factor value and display the value in the browser. If the entered cost factor value is not evenly distributable, you can choose to ignore the message or fix it. Specify Ignore to allow the uneven distribution to be saved and manually update individual lines to account for any unenven distribution. Specify Fix to allow entry of a new cost value. The Factored Unit Cost column is only populated when using cost factor.
Note that factored costs do not show as individual lines in the browser, but are distributed and visible after register processing.
You can edit an inventory line for the new unit cost and specify a memo to explain the change. The browser display includes the Item number and description as well as quantity and unit of measure, Current Unit Cost, New Unit Cost Unit Cost Difference, the Total Cost Difference, and memo.
In the browser, the Cost Overridden column includes an asterisk, *, when the receipt cost was changed by the user.
When using the look-up button for on file cost discrepancy records, factored cost records are included in the look-up results. Cost discrepancy records, which are auto-created by an over-shipment being filled by a receipt, are not included in the look-up results.
Serial and Lot lines
For serial/lot lines, the cost discrepancy update is extended to each serial/lot number, but you cannot change cost separately for each serial number. If any cost discrepancies have been entered, but not posted, you must run Cost Discrepancy Register before you can close the GL or IC period.
If the costing method is anything other than LIFO or FIFO, no cost changes will be made to the past documents that make up the disbursements.
In the header portion of the program, specify the warehouse and the document type: PO – PO Receipt, TR – Transfer Receipt, AD – Adjustment, MC – Bill of Materials, MF – Formulation, WH--Warehouse document, or SO – Sales Order/Credit Memo. For document types except adjustments and warehouse, specify the Doc ID # and for PO receipts, transfer receipts or sales orders/credit memos specify the Receipt/Ship#/Invoice#. For adjustments and warehouse documents, specify the item number and date of the adjustment.
If the filling of an over-shipment (OS) has a different cost than what was used on the usage document, a cost discrepancy record will be automatically created during the receipt process and flagged as User Entered =”N”. Cost discrepancy records for over-shipments are display-only and cannot be edited or deleted in this program. You must run the Cost Discrepancy Register (ICR610) to process cost discrepancy records for over-shipments to finalize the changes and allow additional edits to be performed.
Special-order temporary items
Special-order Temporary items are included in cost discrepancy processing for the Cost Discrepancy Entry and Cost Discrepancy Register programs.
If a temporary item is entered in Order Entry as a special order, then the temporary item is to be received on a tied special-order PO or transfer. During Order Confirmation, a tied disbursement record is created, against which any cost discrepancy entry can be successfully applied. Cost discrepancy entry and register for this type of special-order temporary item updates cost for both the receipt and the disbursement of that special-order temporary item.
See also