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Jul 14, 2015 at 06:07 AM

Actual Raw Materials Purchase Cost With Sales order costing



We have a requirement to compute the actual purchase costs of the raw materials (using vendor prices and not using the materials standard prices) used in the in house manufacturing of a sales order costing scenario.

For example :-

1) Sales order is raised for 100 units of product A

2) To manufacture the 100 product A, we need to buy raw materials of 20 units of A-1, 30 units of A-2

3) The purchase price of A-1 is $40 and A-2 is $10 from the same vendor.

4) Whereas the standard price maintained in the material master is $30 for A-1 and $7 for A-2

5) When we manufacture the product A in house for the sales order, we withdraw the A-1 and A-2 from inventory and the system uses the standard price of the materials to valuate the goods issue to the production order instead of the vendor purchase prices of the raw materials.

What we want is to valuate the raw materials using the purchase prices of the vendor and assign it to sales order cost estimate, instead of the standard prices maintained in the material master. How can we achieve this?