Allocate materials to a production order

[Former Member]

Hi friends,

I have two production order types.

Standard production orders and reprocess orders

if the material got fail from the original order, we have to reprocess the order. we create the reprocess order and then we allocate the batches to the reprocess order.

When we allocate it,

the cost of the materials will transfer to the reprocess order.

we get the reprocess order cost to the original order from cost element.

Our requirement is get only the dyes and chemical & the reprocess operation cost to the original order.

What need to be done in order to allocate the materials to the reproces order without the cost.

Please update us.

Br,

PubuduS

[Former Member · Accepted solution]

Hi,

What you want is actually what really happens.

You issue the finished good to a rework order. Then you issue materials for rework and confirm rework operations. After rework is complete, finished good is receieved into stock. What actually is charged on rework order and what is calculated in order settlement is the rework materials and activities. Finished good has accumulated cost on itself as a consequence of the rework. Rework cost must bu charged to the material (or else it must have been sent to some account), and this is accomplished by the rework order process. Why do you want this process change?

Regards.

[Former Member · Accepted solution]

Dear ozgen,

My requirement is to get the reprocess order cost to the original production order in order to check the prder profitability.

as you said when I allocate the FG materail, it comes with a cost attached to it.

72204 Stock Transfer Fnished Goods 0.00 0.06- 0.06- USD

72204 Stock Transfer Fnished Goods 0.00 576.11 576.11 USD

100 Reprocess order settlement 1380100 0.00 620.24- 620.24- USD

90091 Lab Testing QUALITY/M00013 0.15 0.00 0.15- 100.00- USD

0.15 44.19- 44.34- USD

90010 Machine Cost Preperation KNITTING/M00003 0.00 1.43 1.43 USD

90060 Finishing MachineCost Stenter FINISHING/M00007 0.00 42.76 42.76 USD

Finishing Prod Cost 0.00 44.19 44.19 USD

0.15 0.00 0.15- USD

if you see the cost element 72204 576.11$ now my required cost is 90091,90010,90060 costs only. How can I allocate the FG materials to the reprocess order without the FG cost.

Please advice.

Br,

PubuduS

[Former Member]

Hi,

I think the following scenario might suit to your requirement. You'd better ask CO/FI people regarding settlement profiles and order settlement.

Use a new order type for rework process for which settlement will be done to production orders.

In definition for the order type assign a new settlement profile which allows production orders as cost receivers.

Open rework orders without material with transaction CO07.

Enter production order number in the settlement rule.

Carry out rework with goods issue and activity confirmation and settle rework order with KO88.

Regards.

[Former Member]

Hi,

This is what exactly we do . but my point is I want to ignor the cost which comes from stock transfer finishgood, I want get only the operation cost and the dye cost as the cost in the reprocess order. how can we do it. is there any way we can get it done.

Br,

Pubudu.

[Former Member]

hI,

create new materrial code with assign FG BOM component to this code,

create rework production order with new mterial code ,create new operation as rework for the new material code ,

U could assign production order or Cost center in order to trace rework cost.

pl. try & revert back,

Devendra

[Former Member]

Hi,

In this scenario, FG is not issued to rework order. Original production order is paused until the rework order is settled. Only materials for rework are issued to rework order. As it is without material no goods receipt takes place, only cost for rework is accumulated which is sebt to original order.

Regards.

[Former Member]

Dear Ozgen,

I want to clarify some thing.

1. Lets assume the orginal order 1380100, order Qty 100kg. This get failed due to a production issue. at the qa point when they transfer to the reprocess location order get updated as delevered as 100kg.

2. then I create the rework order and allocate the 100kg to it. and I reprocess. when I got to cost analysis I have a cost element as 722004 - Stock transfer finishgood $100.

Now I have to re-dye this order and dry the cloth. My dye cost is $10 and the operation cost is $10. When I settle this order, my reprocess order cost comes as $120 and it will get updated in the main order.

now I have a cost element as 40000 = $120 .

Does my cost get duplicated in the accounting terms.

Br,

Pubudu.

[Former Member]

Hi,

Cost is not duplicated. Production orders only carry cost. It does not matter if you have two or more orders for the same material. When orders are settled cost is transfered to stationary stock accounts. In your example, when FG is received into stock from the rework order, value of FG in stock will be $120 which is standart plus rework cost. Costs accumulated on orders are temporary till orders are settled. These costs are reflected to the stock account.

Regards.