Hello All,
I am reviewing the by-products functionality to meet a client’s requirement, and I am surprised how its functioning. When I am defining my by-product, I can specify "by-product Burden amount" but this is actually getting added to my overall production cost, and my FG cost is increasing.
What we want is a bit opposite. We want to be able to define a specific cost for By-product. When a production order is ended and a by-product is received into Inventory, we need the by-product to have this cost, and the same to be reduced from the FG’s cost.
Adding more context:
Our client is into manufacturing of Wooden kitchen units. They consume the plywood boards in the manufacturing process, and some offcuts are left over in this process. We want to track these off-cuts into inventory with some fixed cost associated with it.
Co-products is an alternative option that we may want to use but the challenge is that we can define the co-product cost allocation only in percentage. We want to be able to define the cost allocation by a value( A fixed value for the off-cut).
For simplification, if we consider entire kitchen unit as one SKU, and to produce this, we may use 10 different components, but the major one is the plywood. Co-product in our scenario is just a portion of the plywood board. So, it doesn't make sense that we add cost allocation by percentage because it takes the percentage of the overall production cost.
Appreciate your thoughts on this. Thank in advance for the help.
Regards,
Santosh
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