Linked Site Costing in QAD
Linked-site costing lets you specify default cost source sites for items held at multiple sites in one database, which is especially useful when items are held in inventory or manufactured at one primary site, but are also held or manufactured at secondary sites. You can also assign different primary sites for different product lines, item types, or Purchase/Manufacture code designations. The use of linked-site costing reduces the number of item site cost records that need to be maintained.
Establish the rules that define the default cost source site in Linked-Site Rules Maintenance. However, you can change this value manually in the GL Cost Source Site field in Item-Site Cost Maintenance (1.4.18). Specify which site to set as the GL cost source site for any specified item. This lets you assign costs for any item from any valid designated GL cost source site.
With linked-site costing, three site-linking rules determine the default GL cost source site for items:
- Linking rule 1 sets the inventory site as the default cost source site (same default if not using linked-site costing)
- This setting allows you to set up the inventory site as the default cost site for manufactured items (Purchase/Manufacture code M), and set up another site as the default cost site for configured items (Purchase/Manufacture code C) using one of the attributes: Purchase/Manufacture code
- Linking rule 2 sets the site in Item Master Maintenance (1.4.1) as the default cost source site
- This setting lets you set up costing on a per item basis easily. For example, if your business manufactures an item at one site and distributes that item from several sites, you can set up the manufacturing site entered in Item Master Maintenance as the default cost source site for that item. This eliminates the need to set up separate GL standard costs for the same item at each distribution site
- Linking rule 3 sets any site you designate as the default cost source site
- This setting lets you establish a cost-only site that is used in rolling up costs and linking all inventory sites to this specific cost site
For linked-site costing to function in Item-Site Cost Maintenance, the following must be true:
- Valid item, site, inventory, and GL standard cost information exists for the sites and inventory you want to link
- Linked-site costing is active and linking rules are defined for the inventory site. (See Linked-Site Rules Maintenance)
- The inventory site and the GL cost source site are in the same database
- GL cost set is an active GL cost set
- The GL cost source site is not linked to another cost source site (no circular links)
In a multi-site environment, GL costing can be simplified using Linked-Site costing. It offers flexibility in setup and reduces the number of records that must be maintained, which improves efficiency and reduces errors.
If you are interested in learning more about linked site costing in QAD and/or maximizing the use of your QAD system, contact us here to find out how we can help you grow your business. You can also email us at firstname.lastname@example.org or call (312) 345-8810.
Is Your Accounting Software Hurting Your Business?
Top 10 Inventory & Operations Decisions Distributors Are Making Blind
2020 Nucleus Research Report on ERP Technology