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# Cost Calculation on Combined Order (DIMP)

Feb 13 at 01:47 PM

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Former Member

Hi gurus,

I'm facing a doubt regarding the Combined Production Order, I've created some tests, example: PO1 & PO2, combined into the PO3.

I can see the costs analysys after set the POs in TECO status and running the cost calculation on the combined orders PO1 and PO2, but the main order PO3 is showing no costs tall, when running analysis.

Is this the normal behaviour? I should just expect costs on the combine orders PO1 and PO2?

Stefan Weisenberger
Feb 21 at 11:58 AM
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Hi Bob,

my understanding is that the combined order is a means to streamline production. Therefore I would expect it to transfer all costs back to the original orders and inventory posted - once combined order is settled. I am not a costing expert, though. Have you checked the online help on this one?

There are also specific settling rules and an exit available (mentioned in the link as well) if you have more sophisticated requirements.

If you are interested in WIP, and maybe even WIP Batches, this is a deeper discussion. Also, if you consider to use order split and transfer costs collected until split from parent order to child order.

Let me know if this helps a bit, or if there unclarities in the online help.
My experience: it's easier to find logistics/manufacturing expertise in this space, then detailed finance/costing knowhow.
That's also closer to my profile ;-)

Thanks and regards,

Stefan

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Alfred Becker
Mar 02 at 02:26 PM
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I can only second Stefan: Costs occur on initial orders and not on the combined order (after settlement).

For example, you can combine operations only. Of course, the initial order can have further operations and needs to be settled one day. Thus is needs to inherit the cost for the combined operation from the combined order.

Another reason is accounting: Inititlal orders may have an associated requirement like a sales order which can be used for accounting. The combined order has no associated requirement other than the orders to be combined. Where would you account costs to?

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