Mfg Market
This new type of adjustment code is used with manufacturing and provides a way to use manufacturing as a profit center. This is done by setting the amount for this adjustment equal to any difference between the market cost for the manufactured item and the actual cost plus any other adjustments (not including this adjustment). Since you have control over the market cost for the manufactured item (market cost only changes if you adjust it), this allows you to manipulate the cost to include some degree of profit.
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Cost Calculation A Work Order's "Total Cost" is calculated as the sum of the extended current market costs of the materials used to manufacture each detail record (manufactured item). The Unit Cost is calculated as the Total Cost / Detail Quantity (the quantity on the work order for the manufactured SKU). The Adjustment Amount = Total Cost – (Sum of Actual Material Costs + Sum of Adjustments) *The resulting "MfgMarket" adjustment amount does not include Mfg Market types nor do they include any regular manufacturing adjustments that you do "not include in the market roll-up." There is a check box setting provided for Manufacturing type adjustments to exclude them from the market cost adjustment. |
It is possible to have a negative adjustment (profit) in certain cases. For example, if the market cost set too low, or during manufacturing there are added items or adjustments, these can push the manufactured cost above the desired market cost.
Adjustment Code: Mfg Market Type
Adjustment Code
This drop down control may be used to enter or select an existing adjustment code for modification or deletion, or to enter and define a new adjustment code. When used for selection within application areas (Point of Sale, Manufacturing, etc.), the list of codes is filtered based on their assigned category, so only the applicable codes are listed. As an alternative to entering a code, you can type a full or partial description in the text area and then choose "Description" from the alternate menu.
Description
The description should indicate the purpose of the code. This will be listed alongside the code in drop down controls used for selection. The length of the description is limited to 30-characters.
Disabled
This check box field may be used to disable an existing adjustment code. Disabling a code prevents the code from appearing in selection lists, but does not remove the code. This allows the code to still be referenced on documents and any transactions which may currently be assigned to the code. The menu marker 
allows the deletion of an adjustment code; however, it's best to only do this when a code hasn't been used. Deleting a code removes information about the code permanently and can cause code descriptions to disappear from any documents that referenced the code. For this reason, we strongly suggest using the disable option in place of deletion whenever an existing code may have activity.
Category
This determines where the code will be available as well as sets default values for certain fields on the form. Changing the category on any existing code is strongly discouraged. If the category is modified, fields on the form are set to default settings for the category. Even if the category is then changed back, any prior entries on the form and for the selected adjustment code will be lost. If the category is accidentally modified for an existing code, it's best to first Cancel (F9) and reselect the code to reload the actual settings in this case. There are currently five (5) categories: Purchasing, Point of Sale, Manufacturing, Receiving, and Mfg Market.
Type
The only type available for manufacturing (mfg) market is the "adder" type. The field is read-only to prevent changes.
Method
The only method available for manufacturing (mfg) market is the "manual entry" type. The field is read-only to prevent changes.
Pro-Rate By
The only "pro-rate" option offered is "Cost/Price." In the case of manufacturing, adjustments are applied based on cost. The field is read-only to prevent changes.
Default Amount
This is usually the dollar amount or percentage to be used for calculating the adjustment; however, it is not used with manufacturing (mfg) market type adjustments. The field displays a zero (0) dollar amount and is read-only to prevent changes. The actual amount of a manufacturing (mfg) market adjustments is calculated when manufacturing a product and is not manually set.
Manufacturing G/L Mapping
Ledger mapping for manufacturing must be done before setting up an adjustment. This mapping is found the detail mapping database located under the General Ledger area (select "manufacturing costs"). For manufacturing (mfg) market type adjustment codes, we suggest using either an expense, cost of goods sold, or income account. The difference between the manufactured item's, or items', market cost and the sum of the materials and other adjustments* determines the amount credited to the specified account.
This type of adjustment isn't intended to represent any actual expense, such as labor, but is instead meant to "reserve" some of the cost as profit. Crediting an income account increases your income balance immediately when the goods are manufactured. The remaining income would be recorded at time of sale. Crediting a cost of goods sold or expense account reduces your cost of goods sold (or expenses) immediately when goods are manufactured. Either results in an increase to Net Income by the adjustment amount once the manufactured items are sold. In neither case would the margin shown for the sale (invoice) reflect the profit from the adjustment.
Process (F12)
Choose Process (F12) to complete the changes or additions to the adjustment code database.