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Former Member
Jun 29, 2009 at 11:05 AM

effect of Refurbishment order on stock value.

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Hi experts,

I have one following doubt in refurbishment order as mentioned below---

Say a material "motor" is having 3 valuation-- C1(NEW), C2(REFURBISH), C3(DAMAGE) standard price of which is $ 1000, $500, $100 matained price control as S for each valuation in material master & V for the material "motor".Stock qty for C1 is 2, C2 is 2 & C3 is 3.So the stock value for each one will be C1- 2000, C2-1000 & C3- 300.

Now I have created one refurbishment order & issued 1 qty. of valuation C3 & after refurbishment material is posted to stock.Refurbishment cost is say -- $100 including manpower & other spare parts.At this stage when I am viewing cost report of the refurbishment order , it is showing material & manpower cost as $100. Also another line as $500 as negative cost. *Where from this neagtive cost of valuation C2 is coming? Also what will be the stock value for each vlauation at this stage ?After settlement what will be the stock value for each vaulation?Normally where the cost of refurbishment will get settled?If I would have maintained price control as V for each valuation , what would have been the effect?

Please explain in details of my above doubts.Thanks in advance.

rgds

rajib