For many ERP.net users, cost recalculation is one of the most labor-intensive and resource-demanding operations in the system. Originally conceived as a process for use in exceptional cases (e.g., when documents are entered out of chronological order), the need for Cost Corrections has become a daily routine for many companies. With the new "Adjust base costs" feature in version 24, ERP.net offers an innovative solution to this problem.
The challenge of cost recalculation
Over the years, our attempts to accelerate the cost recalculation process have faced increasing challenges. In times when databases reach terabyte sizes, rapid and efficient recalculation becomes more difficult.
The primary reason for the frequent need for recalculation is the discrepancy that accumulates over time between the base cost and the adjusted cost of products. This mismatch necessitates constant adjustments to maintain up-to-date cost information.
What is the "Adjust base costs" feature?
Instead of focusing on speeding up the recalculation process, in ERP.net version 24, we approached the problem differently. We created a feature that minimizes the need for frequent Cost Corrections. The new "Adjust base costs" function allows for aligning the base cost with the adjusted cost for the selected warehouse. This means that after executing the function, the base costs will be the same or very close to the adjusted costs, making them directly usable for business and accounting purposes for the foreseeable future without the need for further cost corrections. Minor deviations may occur only if there are non-chronological actions performed after the last execution of this function.
When and how should It be used?
The ideal approach is to execute the function once a month after the monthly Cost Correction is performed. After execution, the base cost will remain accurate until a new non-chronological action arises. This could be days or weeks during which no new recalculation is necessary. Even if new non-chronological actions occur, they usually do not lead to significant deviations. Therefore, after the function is executed, we can rely on accurate costs for some time without needing a new adjustment.
Looking ahead
In future versions of ERP.net, we plan to automate the transfer of adjusted costs into the base cost. After each cost correction, the added values will be transferred automatically, which will eliminate the accumulation of differences between the base and adjusted costs.
This innovation will not only simplify the cost management process but also allow for the accounting of future adjustments as of the correction date, rather than the original document dates. This is an alternative that we will explore and develop in the future.
Conclusion
The new "Adjust base costs" feature is a significant step forward in cost management in ERP.net. It not only eases the load on the system but also provides more accurate and reliable cost data for products. This opens new possibilities for more efficient inventory and accounting management, enriching the Inventory Management module with new functionalities.
Although we are still at the beginning of this journey, the availability of this operation marks a significant advance and promises substantial benefits for all ERP.net users.
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