Global Post

The Global Post process is the tool that calculates the costs associated with the feed mill for the period. The system has the option to calculate the costs based on FIFO or Average Cost methodology. The global post process can be generated on a weekly, monthly or combination of weekly/monthly based on the fiscal calendar. This process only includes actual ingredient costs and standard manufacturing overheads and delivery. The financial period end tasks determine the actual overhead and delivery costs at the end of the fiscal period using an allocation process.

The purpose of this document is to outline the revaluation process to revalue the beginning inventory when there is a standard costing change. The revaluation occurs on the first day of the required global post period.

The global post process completes the following processes:

• Valuation on ending ingredient inventory
• Calculates the ingredient usage cost based on the selected methodology and values the cost of feed production
• Valuation on ending finished feed inventory
• Adjusts feed deliveries to actual period cost
• Adjust cost of sales to actual period cost
• Option to adjust Feed Formula Prices to most recent actual cost

Before Global Post can be run, Registry items must be set up in Admin>System>Registry>Poultry Registry>Feed Mills>FMIM.

• General> Actual Adjustment Variance Mode

  Finished Feed production variance incurred at the mill is allocated to current period or it remains at the mill in a variance account.

   

  Options are:

  

• General> Inventory Cost Mode

  Inventory Valuations can be determined using True FIFO or Average Cost Basis valuation/cost tracking.

   

  

   

  • Average Cost- Calculates production and inventory costs based on the average input costs for the period.  Global post determines the valuation period.
  • FIFO - assumes that the first products received will be used first, therefore values, production and inventory costs are based on the order of input transactions. The physical inventory transactions will determine the valuation period.
• General> Inventory Time Mode

  If the Date Time is selected program will expect times entered for all transactions and physical inventories will be taken at a specific time.

   

  

   

  • Date Only - program will look for the date of the transactions. Transactions will be ordered by date.
  • Date Time - program will look for the date and time of the transactions. The transactions will be ordered according to date and time.

   

• General> Shrink Variance Mode

  Allocate the shrink adjustment to the feed formula cost or variance account for the period.

   

  

   

   

  • Exclude the shrink variance is not included to the cost of production and allocated to a shrink variance account. This option cannot be used for FIFO costing method.
  • Inventory the ingredient shrink variance is transferred to the cost of feed production for the period and the finished feed shrink is allocated to the cost of feed deliveries for the period. Required for FIFO costing method.
• Period End> Global Post Mode

  Shrink values can be calculated daily, weekly, monthly or dual (combinations of any of the two). In dual mode intermediate weekly values are obtained prior to month end, then at month end shrink is restated to a monthly bases.

   

  

   

  Note: When a dual option is set, and Global Posting is ran the lesser of the combination must be ran first.  (ie,  Daily/Weekly, Daily posting must be ran before Weekly posting)

   

   

• Period End> Physical Inventory Zero Default

  Default behavior when a physical inventory is not entered for an inventory item.

   

  

   

  Actual Physical Inventories Only - Process only actual physical inventories.

  Actual Physical Inventories Plus Virtual Period End - Process actual inventories plus zero period end inventory if no actual physical inventory exists for period end.