Reconciling JD Edwards Inventory Changing Cost Levels - Much Harder Than it Looks

10463859 1018866614811432 4823559341529199060 oEdward Gutkowski, Chief Architect - RapidReconciler, Products


To the casual eye, it seems easy to change the cost level of an item. What do I mean by cost level? In the JD Edwards item master, there exists a data element for the cost level with valid values of 1, 2 or 3.
Cost Level 1 – An items cost is maintained at the item level, meaning it must be the same for all branch plants, locations and lots. While less frequently used, it is certainly the easiest to maintain. Please note, this level cannot be used in a multi-currency environment.

Cost Level 2 – An item's cost is maintained at the branch plant level, meaning it can be different in branch A than branch B etc. While more difficult to maintain, some consideration must be given when moving these items back and forth between branches.
Cost Level 3 – An items cost is maintained at the location/lot level. It may be obvious that this would be the most cumbersome to maintain.
Let's say we have some items that are at level 2 and we want to change them to level 1. Can't I just go to the item master and change the number? The answer is a resounding NO!

As an example we have an item that is stored in 2 branch plants. In branch A the cost is $1 and in branch B the cost is $1.10. There would be 2 records in the cost table F4105. Changing to cost level 1 means we must consolidate those records to 1. How would the system know what cost to use? The answer is: It wouldn't if you did it interactively.

There is a program, R41815, that will perform cost level conversions. There are rules to follow that the program will validate and error if things are amiss. This way you have a chance to fix individual items so that the transition happens properly. If a cost conversion is in your plans, I highly recommend reading the documentation for this program before you embark.

Although it may be tempting just to go to the item master and type over the number, remember the complexity that lies under the covers. Changing cost levels is harder than it looks!

Happy reconciling!

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