Aged Part Write Down Tool
1.23 - Aged Part Write Down Tool
In the Part Inventory application you will find a new entry in the “Tools” menu called “Aged Inventory Cost Write Down”
Selecting this will present you with the Write Down Tool application filters….
- First you will select which parts to process based on five different selection filters. This will allow you to treat sections of your inventory differently if desired.
Next, you have the ability to apply different Write Down Rates based on the Number of Months with No Demand (Aging). You can enter any combination of “Months” values provided that they are in descending order from top to bottom. Also, you can select different Write Down Rates for each Aging period. In the above example any part with MND > 25 months will have a 100% write down rate applied. Parts with MND between 16 and 25 months will have a 5% rate applied.
- You also have the ability to set a “Minimum Calculated Cost” which when entered will ensure that the newly calculated Average Cost is never less than the value entered which is $0.01 in this example.
- Lastly you will select an Adjustment Reason to use when processing the adjustment entries against the Part Record.
If you want the system to retain your preferred filter selections, simply select “Set as Default Filter” from the “View” menu at the top of the screen.
Once the filters have been set, select the “Refresh” button and the desired parts will be processed and only those which meet the write down criteria set in the filters will be displayed on the screen for review.
For each part selected for Write Down you are presented the following information:
Current Average Cost
Months No Demand (MND)
Write Down Rate that will be applied
Average Cost after Write Down
Net Inventory Valuation Change created by the Write Down
At the bottom of the screen you will see how many part records have been selected and the total change to inventory valuation that will be created when the write down is posted.
At this point you have the ability to:
Review details about any part listed by either double clicking on the line item or right click and select “Show Details”. This gives you access to the part record from which you can view all details about the part.
Remove a part from the Write Down process by selecting the “Delete Part” icon or right click and select “Delete”.
Manually modify the Write Down Rate on any line item by simply entering a new value.
Manually add additional parts to the list using the “Add Part” icon
- Print a report of the parts listed for Write Down.
Once posted, each part will have an entry in the Adjustment Tab to reflect the change made to Average Cost.
The Aged Part Write Down Tool uses the same aging logic used in the Part Aging Report with the exception being that the tool will consider previous write downs as a demand activity. This is a safe guard to prevent a user from writing down the cost of a part multiple times by accident.