Best Practices for Initialization
Before you initialize Periodic Costing, consider the following best practices:
• Decide when to start the initialization.
You enter the initialization date when you start the Periodic Costing Initialize (30.5.1.23) program. If you intend to initialize on the first day of the month, for example, you enter the last date of the previous month as the initialization date.
Actions must be performed in preparation for initialization (see
Best Practices for Initialization). For this reason, you must also select a time, based on completion of the actions, to initialize Periodic Costing.
Also, the system displays a message when you enable Periodic Costing in Periodic Costing Control that displays dates (from xx year yy month) upon which to use PC. Review the dates carefully to ensure that the dates match the dates you intend to use PC.
• Create a simulation cost set for the initialization process.
QAD recommends that you create a simulation cost set by copying the standard cost set and verifying that data is correct in the simulated cost set; however, you can also enter a current cost set or a standard cost set. Make sure that you define the item price for each item in the cost set.
• Close all sub-ledgers for prior periods as of the effective date for the initialization. Use Entity GL Period Modify to close the sub-ledgers.
• Close all work orders before initialization. When work orders are not closed, the WIP costs can be inaccurate.
• Ensure that the trial balance and the operational reports balance before beginning Periodic Costing.
• Ensure that you have completed setup as described in this chapter for the following before you initialize Periodic Costing.
• Create a PC daybook—transition or management
• Enable PC and the PC sub-ledger in Periodic Costing Control.
• Set the calculation method in Periodic Costing Control to either WAVG or FIFO.
• Create the periods if using FIFO in PC Periods Maintenance (30.5.1.1).
• Create the child cost set in PC Periodic Cost Set Maintenance(30.5.1.4) and define the cost for every item on the cost set you enter.
Note: To initialize Periodic Costing using Periodic Cost Initialize, you enter a reference cost set—either a current cost set, a standard cost set, or a simulation cost set—that the item unit costs must be copied from for initial cost valuation. Before you do this, you should define the cost of every item on the cost set you enter.