The Average Costing is set up inside the Item Card. I am having questions regarding the production side.
To setup Standard Costing for production, here is an example of what I did.
If I am producing item A, I will set up:
- A work center “Costing Work Center”, with a Unit Cost of $1. The UOM is set to “HOURS”. Flushing Method "Backwards".
- Routing for the finished goods item A, with work center “Costing Work Center”, and assign the time to “123” hours.
Ideally, after finishing the production order for 1 item A, the unit cost will increase $123. ($1 * 123)
I did the following and it is not reflecting on item A's unit cost.
1. Create a Firmed Planned Production Order with 5 item As
2. Refresh Production Order with Lines, Routing, Component Need checked.
3. The item A appears in the Lines. I select it, and click on "Routing" under Line menu, it is showing 0 work centers. (<- I think here is what goes wrong.)
4. Clicked "Change Status" to "Released". (Update Unit Cost off)
5. Inside "Released Production Order", select the line, click "Production Journal". I tried to change the setup time, but I can't.
6. Post the Journal Line.
7. Change Released Production Order status to Finished.
=> The standard cost $123 is not added to Unit Cost.
