Manufacturing Expected Costs

(0) Share

Report

Posted on by Thomas_X1

Hi all,

There is something I cannot quite understand here..

Why does output not use expected costs from the raw materials just like it does when an order is finished?

Instead it uses an expected cost from the unit cost on the item card. This is not accurate and does not make sense and would cause WIP value to be incorrect?

E.G I have 1 job for 5 units:

$1,500 of raw used

2 units have been output and 3 remain

now that should mean the 2 units should be posted at an exp. cost of $300 each with $900 still in WIP.

But if this item card has a unit cost of $400 it would post the costs using this value.Why does it use this value and not the raw material values? Is this a setup issue or by design because it does not make sense to me?

So in my example output would be showing as $800 with only $700 in WIP which is inaccurate.

Thanks.

*This post is locked for comments

I have the same question (0)

All responses (1)

Answers (0)

Rashed 3,765 on at

Like (0)

Report

Re: Manufacturing Expected Costs

The reason is that some companies do backward and others do forward flushing or manual.

So if they are posting the output before the consumptions you wouldn't have the raw material cost.

The cost comes from item/sku card by default.

if you would like to change this, in CU 22 you'll need to add code to sum the consumptions and change the following line in postoutput function.

Amount := "Output Quantity" * MfgUnitCost;

Was this reply helpful? Yes No