We are working according to a toll manufacturing plant principle.
The owner of the goods, delivers some components on the other hand this company is selling the fininshed product. The semi finished product is managed and valuated in the toll manufacturer plant, without the components of the selling plant. However the finished product is taken into stock in the sellig plant and includes also a price difference due to this different valuation.
Is there a way to exclude this price change in the material ledger logic:
Plant A : selling plant is purhasing component A for 1 Euro
plant A : selling plant sells finished product D at 4 Euro (including the 1 euro of component)
in plant plant the material A exists also but is not the same value, since the value of 1 euro is eliminated
During the actual costing this difference of 1 euro is reflected in the ending stock of plant A, which results in a lower stock value, however this is due to the fact that we are excluding the 1 Euro in the valuation of the producing plant.
How can we eliminate this variance?