Open Forum

Service series and costing

  • 1.  Service series and costing

    Posted Jul 23, 2020 03:19 PM
    I have a colleague that is using SL's service series and he asked me for some advice regarding costing.  They currently generate approximately 8,500 service calls per week with various labor and materials assigned to the call via the equipment maintenance.  At this point they are having issues because of the way they assigned inventory. They have a generic item assigned in service that can be any of several different inventory items.  These are setup as FIFO items and they constantly run negative which, if I remember correctly, means there is no cost being assigned.  This is further complicated because they are purchasing "real" inventory items and not reducing inventory when consumed.

    So - I am no longer a provider and I work for an SL end user.  My ability to assist them is somewhat constrained now.  Does anyone know of an expert in inventory / costing that he can speak to?  This is a time sensitive request.  I would just relay information onward.

    Daniel Shepherd
    Accounting Manager
    Sarris Candies Inc
    Canonsburg PA

  • 2.  RE: Service series and costing

    Posted Jul 24, 2020 09:53 AM
    Hi Daniel,

    Has anyone reached out yet to assist??  If not, I can try to assist them....I deal a lot with inventory and related issues....


    Michael O'Neill
    Director of Finance
    Eastex Telephone Cooperative
    Henderson TX

  • 3.  RE: Service series and costing

    Posted Jul 24, 2020 10:03 AM
    I have as lot of experience with Service and Inventory and would be glad to assist.
    The problem is that if you do not account for inventory in an item basis, and use that for purchasing (this they are doing) and consumption (this is not done due to 'generic' parts), there is not an effective way to cost inventory.  I have seen other companies use generic parts numbers.  At month-end they have to use reporting to try to consider usage and make a JE to move inventory to COGS.
    In this method, they did not use inventory in a traditional sense, all purchase went to the generic parts.  They were not able to calculate profitability at the service call level.

    I would be glad to listen and offer any advice I can.

    Mark Schrier
    Information Systems Director
    Mackay Communications, Inc
    Raleigh NC