Option 9Process Initial Setup

This function verifies the Products By Warehouse and Products By Vendor records. Based on the costing method you are using, various costing computations are performed in the Products By Warehouse file.

The following processing is performed:

• If you used Opening Entries functions to enter physical inventory data, the physical inventory entries are processed. On hand quantities are set equal to the physical count quantities.
• Record-protect fields are set in the Products, Products By Warehouse, and Material Requisitions files.
• Depending on the costing method selected in the Parameters file, and on whether or not Total Cost has been entered in the Products By Warehouse file, the system may compute Total Cost.

If the costing method is average cost, the system uses this formula:

Total Cost = Cost x (On Hand - Uncosted On Hand)

If standard cost or last cost is used, the system uses the Total Cost entered on the Products By Warehouse record. If no Total Cost was entered, the system uses the formula given above.

If FIFO or LIFO is used, the system uses records in the Product Purchases file to compute the Total Cost. This calculation overrides any Total Cost entry on the Products By Warehouse record.

• Last Cost is verified or computed in the Products By Warehouse file.

If the costing method is average cost, Last Cost is set based on the latest Last Purchase date for this product in the Products By Vendor file. For last cost or standard cost, the system uses the Last Cost entered in the Products By Warehouse file. It then compares the Last Purchase dates for the product in the Products By Vendor and Products By Warehouse files. If the Products By Vendor date is later, the Last Price on the Products By Vendor record overrides the Last Cost entry.

If you are using LIFO or FIFO, Last Cost is set to the unit cost on the most recent Product Purchases record.

• If the costing method is last cost, Cost is set to Last Cost in the Products By Warehouse file.

During this function, the system checks for any errors, prints these on an error log, and places the log in the print queue.

To run Process Initial Setup, select “Process Initial Setup” from the Opening Entries menu.