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Former Member
Jun 25, 2007 at 04:20 AM

# Regarding Costing

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Hi

When i am Creating a Cost estimate for a raw material i have a problem where system is picking wrong cost. I have a material with base Unit of measurement is Grams and Alternating Unit of Measurement is Each. i have a conversion in Material master as 1 EA=xyz Grams. I have a Purchase info record where i maintain record for the material in Each and have a conversion as 1 EA=xyz Grams. When i Estimate the Cost the system is picking the Net Purchase order Value as valuation strategy. the problem here is instead of dividing the Net Purchase order value by XYZ and get value for each gram its picking up Total value for 1 Gram.

Let me give you the exact values

1 EA = 1000 Grams

1 EA = \$ 50

Costing lot Size is 1

Base unit of measurement is Gram

Alternatinve unit of measurement is 1 EA = 1000 Grams

Purchase Info record has Net Price as \$ 50 for Each and has conversion as 1 EA=1000 grams

When Costing is carried out system is picking Net Purchase price as Valuation Base and instead of 5 Cents for 1 Gram its showing \$50 for 1 Gram.

Could any one let me know what might be the reason