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Former Member

Product Cost calculation using Apportionment Structure

Hi Team,

I do settlement for my process order. After the settlement is done, i have checked the cost value posted via cost analysis's report in process order via COR2/COR3.

My question is , why is the value posted to the receiver is different from the apportionment structure that have maintained in Material Master (MRP/Costing view).

process order consist of:

1. Main Product

2. Co-Product

apportionment structure (Material, labour/utilities, Overhead):

1. Main product (75%)

2. Co-product (25%)

My setting is : cost will only effect Main product (75%) and there will be no effect for Co-product.

When i manually calculate (figures in cost analysis report), cost posted back to Main product is about 80% (Material, labour/utilities, Overhead)

Is there any part of my product costing's settings that is overlooked?

Thank you.

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1 Answer

  • Dec 29, 2016 at 01:28 PM

    Hello Mohd,

    Have you maintained the apportionment structure equivalence numbers against main product and co-product..

    does your settlement rule has settlement against material or order

    Regards,

    Venkatesh..

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    • Former Member

      Hi Ven,

      Apportionment structure equivalence numbers is already being maintained before, with 75% main and 25% co-product with co-product is flagged as fix priced.

      Where do i check my settlement rule to identify that it has settlement against material or order?

      What is the difference between settlement against material and against order?

      Thanks