Planer Solution Showcase - Costing Method Migration
For over 40 years, Planer Limited have supplied manufacturers, hospitals, pharmaceutical companies and research labatories in the IVF industry, with the safe storage and preservation of medical and biological specimens. They provide freezers, incubation chambers, monitoring equipment and microscopical tools to preserve, protect and nurture cellular biologicals.
Switching to an average costing model
Historically, dating back to their previous ERP system, Planer have utilised a standard costing method. When implementing Oracle NetSuite, this seemed reasonable to continue with given the benefits that a standard costing solution can bring. Fast Forward to a post go-live review, having worked with NetSuite’s standard costing for a number of months, combined with the complexities and challenges of just-in-time supply chain for off-the-shelf materials during a global pandemic, it was decided that standard costing was not a sustainable option for Planer going forward, and following consultation with Planer’s parent company, the decision was made to switch to an average costing model. 3RP were introduced at this stage, where we highlighted the risks and challenges involved of switching costing method post-implementation. This included all inventory items in Oracle NetSuite needing to be re-created, along with their procurement, pricing, sales and inventory data. Any open transactions also needed to be edited to reflect the new average cost item. Having successfully performed similar migrations to-and-from standard costing before, 3RP were in a position to advise on and deliver a solution that required meticulous planning, attention to detail and a focused effort in ensuring all eventualities were considered.
All standard cost items were successfully replaced with group average costed items, and we ensured all attributes and sublists were replicated on the new items. Group average was selected over average cost to track the same average cost across all locations, rather than the location specific average. For reporting purposes, new items were associated directly with their old inventory records using a bi-directional join field, meaning reporting on historic data became possible, and users could effortlessly switch to looking at the old item when required.
The work was completed with zero business downtime or disruption, with no issues or concerns raised since the project went live. Planer have reduced the time they spend on the process of introducing new components to manufacture and have increased efficiency navigating through their month end process. Their financial reporting is now more reliable and accurate without the requirement of ensuring variances have been analysed and costs updated accordingly.
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“From start to finish and beyond, 3RP have been focused, informative, and diligent in their approach. Since completion, they have provided Planer with more confidence in our NetSuite implementation moving forward.” Simon Delicata, IT Manager, Planer