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Sep 24, 2013 at 05:30 AM

Inventory & GI value of HLAB calculate based on std price & Activity price respectively


Hi All,

This is manufacturing process with MTS strategy (40) and follows Product costing to calculate the price of in-house produced material (HALB/FERT).For example, finished material “WXYZ” will be produced by using 4 operations, we have maintained separate part number for every of operation output (HALB) like “W”,”X”,”Y”,”Z”. All material have BOM, routing and its activity cost. “W” having component “ROH1”, “X” having “W”, “Y” having “X”, “Z” having “Y”, “WXYZ” having “Z”.The problem here is “The consumption of the semi finished materiel GL” value is huge than Finished material inventory GL while doing the production operation (GI, Confirmation, GR)

  1. If I make the costing indicator as not relevant in BOM for the material “X”, “Y”,”Z”, system will calculate only operation cost for these material. I have also changed the BOM for “WXYZ” components as “ROH1”,”W”,”X”,”Y”,”Z”. So proposed the std price for all the material but “X”, “Y”, Z” having only operation cost.

Issue : My inventory value shows as very low value for the materials “X”, “Y” , “Z” as well as depended requirement will be calculated twice while running MRP for the materials “X” and “ROH1”

How to map this scenario? My inventory value wants to calculate as per std price but while issue the material(HALB) for production, system will consider only operation cost. In this case for the first HALB “W” will be considered “ROH1” price with activity cost for remaining “X”, “Y”, “Z” materials it will be considered only activity cost. Correct me if I’m wrong. What was the best practice for this scenario