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Former Member
Jun 22, 2015 at 05:04 PM

Material Ledger-Actual Costing: Price change in by-products passed to co-products

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Hi, We have the material ledger and actual costing activated. We have co-products and by-products. My question related to both areas. If we reduce the value of by products at month end how can we get the cost to go back into the co-products produced at the same time? • We only know the value of the by-products at month end and use MR22 to update them • Currently we plan to have by-products set to price determination 2, since their price is dictated by the market at month end. • By products are produced and not consumed by the co-products, so when I run “Revaluation of Consumption” it does not pass the price change in the by-products back into the co-products to increase their costs/price. Example to explain: Process order produces two co-products and one by-product (by-product standard cost is £20). £120 of costs charged to process order during the month By-product reduces the cost on the process order by its standard cost, so £100 left. At month end, preliminary settlement spreads the £100 over the two co-products. If we reduce the value of the by product to £15 from £20 at month end now that we know its true market value, we want the £5 pounds spread between the two co-products during Actual Costing. But how!!? Many thanks, John