Microsoft Dynamics AX (Archived)

Product cost problem

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Posted on by Dexin

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Hi,

I encounter an issue below

1. I recently ended a production order. Suppose the raw material cost + route suppose to sum up to a amount of 7,497.80 but wonder why the system show me the total cost of 14,995.60. I wonder where the figure came from.

2. I checked the voucher transaction for the product costing, i realize there was a amount of 7,497.80 was posted to a rounding different. Wonder how it happened and what is the logic behind.

Can any of you guide me how do i trace? Appreciate so much.

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Ludwig Reinhard Microsoft Employee on at

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Hi Dexin,

What AX2012 version do you run (R2/3 CU7/8...)?

Have you already checked LCS for an available hotfix?

Best regards,

Ludwig

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guk1964 10,888 on at

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It seems to be double the expected cost.

Rounding is a parameter on the BOM to deal with fixed cost. i.e .the system needs to know the fixed cost for how many if you set the fixed cost for 10000 and then only make 10 it will give a totally different result for the unit cost.

It also depends on whether you cost on the report as finished parameter on the Production order or on the total order quantity.

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Dexin 452 on at

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I am using the CU8 version

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Dexin 452 on at

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Could you please guide how to check which form should I go in to

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Ludwig Reinhard Microsoft Employee on at

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Hi Dexin,

Do you use Standard costing or an actual costing method, such as Fifo, Lifo, etc.

Do you know whether this is the first time this issue occured or whether there have been such big rounding differences before?

For how many pcs. was the production order startet and how much pcs. were specified when ending the production?

Best regards,

Ludwig

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Dexin 452 on at

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This is the firs time i encounter this issue. I am using standard cost, i started qty of 2450 ended 2450 but in between i did change my stand cost price for 1 of my raw material...that changes suppose to adjust 93.60 in total only

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Community Member on at

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Hi Dexin,

Go back to your works order and from top action pane select View - Price calculation (tab - overview costing). From there you will be able to see where the costs are coming from(Estimated & Actual costs). It could be over booked labor hour/qty & wrong resources selected for posting, therefore you will have to check your route card journal postings and correct them if needed.

Hope that helps

V

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Ludwig Reinhard Microsoft Employee on at

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Hi Dexin,

In addition, Please have a look at the price variances and the sources of those variances through the price calculation form V mentioned.

The print button allows you printing a very detailed breakdown of those variances that might help you identifying where the variance comes from.

Best regards,

Ludwig

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Dexin 452 on at

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Thanks for valued comments.

I checked the variances rim the price calculation. I saw just a different of 431.80 from the standard cost variance.

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guk1964 10,888 on at

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With std the sum of component costs going into wip should = the std of the finished product that comes out of wip - any difference goes to variance.

If you have changed one of the input costs, without updating the parent BOM cost, or not until after the Production order estimate, then the outcome is a variance between the production estimate and the standard.

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