Dear AX Experts,
As I understood from the blog of HarryDeshpande (https://community.dynamics.com/ax/b/axxpertsondynamicsax/archive/2013/06/04/absorption-costing-in-ax-2012-what-s-there-and-what-s-missing), the overhead rate will be calculated out of AX then inputted to Product Cost Category Price for calculating Overhead cost of manufactured item. Another limit of AX 2012 did not support to analyze the variance between Actual Overhead cost (from Invoices, Depreciation,..) vs consumed Overhead cost.
May be there is a function that support for full absorption costing in AX 2012 , so called internal cost allocation in Cost Accounting module, which manages the overhead rate by service category rate. However, I still not understand how we can apply this function in able to analyze the variance of Actual Overhead cost vs Consumed Overhead cost. This variance due to the increase/decrease of actual cost or Actual Production quantity. Could you please explain the concept of Internal cost Allocation with the real example?
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