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Former Member

Production Order Splitting Issues very urgent

We have Order Based costing and not using PCC and ML

Say I have created order for qty 100 after two or three operations we can find few pieces are inferior quality so I would like to split the order, when i split the order by qty 90 and qty 10, the parent order is calculating the Mtrl cost + operational cost but child card is only showing Mtrl cost from material master

The Cost suppose to be Rs 1000 for Qty 100

Desired output Parent order – Rs 900 (for 90Qty)

Child order – Rs 100 (for 10Qty)

But I am not getting the cost proportionately for Parent and child order, by product picking the cost/rate from material master.

Please help me it’s very urgent and crucial.

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  • Best Answer
    Posted on Mar 08, 2013 at 11:25 AM

    Hi R P,

    It will not be possible........Reason below.

    Costs
    The costs of the parent and child orders are collected in a common PCC. This is because the parent order, as a rule, has already caused actual costs before the split took place. If the actual costs were collected in the parent order before the split, and separately in the parent/child orders after the split, then the materials of the parent order would have excessively high costs per piece, and the child order correspondingly lower costs. As a result, settlement for each order would result in unwanted variances in controlling.

    Regds,

    Amit Kataria

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