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Jigar Vadia
Jigar
 3
Do you include SGA cost in the Standard Cost? If so, where do you include?
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Posted: Jul 18, 2019   
Votes
Andrea Haines
Andrea
 17
Replied 
Hi. These costs would most likely sit under either Overhead or Burden. By definition, Overhead would contain fixed overhead costs, such as rent, and Burden would contain variable overhead costs that vary with the amount of production, such as the electric utility bill (which may go up or down depending on the amount of production that occurred that month). When burden or overhead costs are placed on an item that rolls up into a higher level item (ie a make item), these costs would roll up to that higher level item when you run the cost roll up. You can update item costs in Item-Site Cost Maintenance.  
00
Replied: Jul 18, 2019
Votes
Jigar Vadia
Jigar
 3
Replied 
Thank you Andrea for your quick response. I would like to be able to perform profit analysis for each product using QAD but currently SGA costs are not included in our Standard cost. Reason given to me is that Standard cost should include only direct cost (Labor) , indirect Manufacturing cost (such as Indirect labor, Depreciation )(Burden) and Fright (Overhead) . In order to perform Profitability analysis, is there any other place in QAD where I can add SGA cost if it needs to remain excluded from the standard cost?
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Replied: Jul 18, 2019
Votes
Andrea Haines
Andrea
 17
Replied 
The system allows you to create simulation cost sets (Type = SIM) where you can perform what-if anaylsis. I'd recommend creating a SIM cost set and copying your Standard costs into your SIM cost set. Then you can manipulate your SIM costs without impacting standard cost. You can then look at item cost for your particular SIM cost set. There's a helpful process map outline within QAD EE that takes you through the simulation process step by step. I'm not sure what version you're on, but in EE, if you're looking at your home page, click into the vertical that's relevant to you (if not already defaulted), then click to the "Finance" node (bottom left), then "Cost - Simulations" (bottom two from the left) and that will take you to the process map I'm talking about. Hope this helps!
10
Replied: Jul 18, 2019
Votes
Tomaz Ranzinger
Tomaz
 121
Replied 
We have developed add-on module for QAD to calculate real fifo costs, add dependent costs to material value and perform real profitability calculation for products based on real and correct  fifo costs. SGA costs are retreived from GL accounts based on defined algorithms. Using this add-on customer is able to get real costs by each product, not approximated value. 
10
Replied: Jul 21, 2019
Votes
Jigar Vadia
Jigar
 3
Replied 
Thank you for your information. Please share add-on module for my reference.
00
Replied: Jul 22, 2019
Votes
Jeff Kohagen
Jeff
 50
Replied 

Note that SG&A costs are not allowed to be incluced in the value of inventory,  they are a period expense.

  A separate analysis of these costs could be allocated back to items for reporting purposes, but would not expect it to be in the Inventory value.

 

 

 

 

10
Replied: Jul 22, 2019
Votes
Jigar Vadia
Jigar
 3
Replied 

Jeff, Thank you!  Is there any facility in QAD to allocate SG&A for reporting purpose without impacting Inventory Value.

00
Replied: Jul 23, 2019
Votes
Tomaz Ranzinger
Tomaz
 121
Replied 
Add-on for costing is named ACM (Advanced Costing Modules). Here is link to https://www.qad.com/about/partners#m2m
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Replied: Jul 24, 2019
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