You’re offline. This is a read only version of the page.
1,982
Hi,
I have set recycled by product as written in this blog.
Now I have a scenario in a production order where I use recycled item as material and also produce recyled item. Suppose my recyled product has standard cost with rate $100. I consume 200 kg and produce 400 kg. What I don't understand, if I view from production costing, costing for my recycled item is $20000 which I'm guessing comes from (400-200) * $100. Shouldn't it be $40000 (400 * $100)? And then my main product costing should deducted from all posted material value with $40000? Is this the design? Could you help me explaining why production posting costing for my recycled item is $20000 and not $40000?
Thank you.
Jefry
*This post is locked for comments
I have the same question (0)If you consume 200 your cost is 200 x 100 =20,000
If your recover twice as much as you started with then your by-product is twice that = 40,000
If you issued 40,000 and 20,000 was used to make the by product and was recovered product, then your cost is 40,000 for the original material because that is what went into wip
Separately you receive a recover 20,000 -effectively as a receipt, so that 20,000 should be shown as a minus on your bom consumption because you are gaining not using and si the value of the gain received from production.
You might get a variance on either Bom line i.e the issue or the by-product receipt receipt so they needed to be treated separately.
Your overall cost for that item for the production order is then 40,000 issued -20,000 received = 20,000.
Share
Report
All responses (
Answers (
