Item Cost

[Former Member]

Hello Experts,

Create a BOM for Finished Good Like

FG001 as finished Goods

RM001 as Raw Materials

And Finished Goods Cost based on raw materials(Last Purchase price)

So i create a A/P invoice for RM001(Raw Materials) ,Quanity is 2,Price per Quantity 100,

So my BOM show 100 Rs. for FG001 Production Cost.But i issued 1 more quantity of RM001 for production order.

then received the 1 quantity from production of Finished Goods(FG001).

Now ,Create a sales order for FG001 then item cost show me only 100 Rs,But issued Value is 200 for the item(FG001)

for increasing the cost of FG001 what i do ?

Thanks & Regards

Krishna

[marcella_rivi · Accepted solution]

Hello Krishna,

I will explain you one scenario. If it is not correct, please let me know me more information about how to reproduce the issue.

I assume the issue method is manual and that you change the quantity in the issue for production. In this case it is correct to have an item cost that is 100 instead of 200 because the system checks the item cost for the child item in the BOM.

In the summary tab of the production order the difference between the actual component cost of the production order and the actual production cost goes to the variance.

Please, let me know if the scenario I have taken in consideration is not correct.

Kind Regards,

Marcella Rivi

SAP Business One Forums Team

[Former Member]

k

[Former Member]

Hello Krishna,

I will explain you one scenario. If it is not correct, please let me know me more information about how to reproduce the issue.

I assume the issue method is manual and that you change the quantity in the issue for production. In this case it is correct to have an item cost that is 100 instead of 200 because the system checks the item cost for the child item in the BOM.

In the summary tab of the production order the difference between the actual component cost of the production order and the actual production cost goes to the variance.

Please, let me know if the scenario I have taken in consideration is not correct.

Kind Regards,

Marcella Rivi

SAP Business One Forums Team

[Former Member]

Hello Krishna,

I will explain you one scenario. I

I assume the issue method is manual and that you change the quantity in the issue for production. In this case it is correct to have an item cost that is 100 instead of 200 because the system checks the item cost for the child item in the BOM.

In the summary tab of the production order the difference between the actual component cost of the production order and the actual production cost goes to the variance.

Please, let me know if the scenario I have taken in consideration is not correct.

Kind Regards,

Marcella Rivi

SAP Business One Forums Team

[Former Member]

Hello Krishna,

I assume the issue method is manual and that you change the quantity in the issue for production. In this case it is correct to have an item cost that is 100 instead of 200 because the system checks the item cost for the child item in the BOM

In the summary tab of the production order the difference between the actual component cost of the production order and the actual production cost goes to the variance.

Please let me know if the scenario I have taken in consideration is not correct.

Kind Regards,

SAP Business One Forums Team

[former_member204969]

The Actual Production Cost is derived from the production order Components tab. It contains originally the lines from the BOM, but they are modifiable. And the system uses these data from the production order and the cost prices of the components at the time of the Receipt from Production transaction. So if you modify the production order, the system can use different components for getting the production cost for different receipts.

So if you use more components to produce a product, you should modify the production order too, it is not enough to write greater quantity on the issue for production.

If you have finished the receipt from production transaction, you can use only an inventory revaluation transaction.