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Former Member
Dec 15, 2012 at 06:00 AM

Incorrect tracing factor in Allocation



I want to understand if the system behaviour is correct. I am allocating my costs based on sales quantity of the material

Say my cost is Rs. 1000

Sale of Product 1= 1 Ton

Sales of Product 2= 1 Ton and 2 Bags

We have set relationship in material master as 20 Bags = 1 Ton

So 2 Bags = .01 Ton

Therefore, Sale of Product 1 = 1 Ton

Product 2 = 1.10 Ton

If I calculate tracing factor of product 1 and product 2 than it comes to ratio 1:10 (1000:1100), which I believe is correct

But If I see in the system, it comes to 1:3 (1000:3000). I do not understand why the system has not considered conversion relation between unit of measures ?

Can any body help on how it can be corrected ?