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Semi finished good cost issue

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Posted on by Niki

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Hi experts,

This SFG used for my production order as a raw material.When i look into production journal entries it shows cost per unit is 5880.59 for this RM. But I used the costing method as FIFO. First quantity 56 should consume in 6602. 13 and second 97 quantity should consume in 5464.02 unit prices. But why the system consume my all 153 quantity to average cost. It is not the behaviour of FIFO. what is the reason for getting this average cost in my production order. Or do i have misunderstanding?

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OussamaSabbouh 1,801 on at

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Semi finished good cost issue

Hello,

FIFO affects item sales, not production output. The 5,880.59 cost comes from actual component and capacity costs rolled up in that production order. Run Adjust Cost – Item Entries to finalize it. FIFO will apply later when selling the finished item.

Regards,

Oussama Sabbouh

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