OH on Production order....

[Former Member]

Dear Experts,

My costing consists of follwing

Material----- 100 Rs

material OH(5%) 5 Rs

Conversion Cost 30 RS

COGM 135 Rs

The 135 Rs will update in FI thriugh COGM, The GR will take place based on the COGM.

Now my problam is apart from Material OH. Client wants Selling OH 5% and Admin OH 5%, But he dont want to capitaliae these two OH types. If i caluculate the two OH for any production order,, at the time of variance caluculation the system considering these two OH types also. Hpow can i achive the above requirement pls guide...

Client wants to see all types of OH at pRODUCTION ORDER LEVEL, BUT DONT WANT TO Capitalise Sales and Admin OH????

Thanks,

Chandu

[former_member309133]

You can create these overheads as part of COGS and not part of COGM. This you define in the cost component structure. Double click on the admin and sales overhead and select the radio button cost of goods sold. With this the inventory is valued at without taking these overheads. But you can see this value in the cost estimate. This can also be taken to COPA.

Sangram

[Former Member]

Thank you Sangram...

Std cost time it is working fine,.....my problam is at the time of month end i will caluculate OH on production order, i want to caluculate all OH types for reporting purpose and no need to consider all OH for variance caluculation ,only production OH for Variance caluculation....

Please guide...

Thanks

Chandu