Hi!
We have a situation where the customer is using standard cost inventory valuation for purchased items. The customer wants to add a 5% overhead to the purchase price, which will then yield the standard cost (at 105% of the purchase price). This overhead shall be placed in the costing sheet so that standard cost calculations will take the overhead into account when updating standard cost from the latest purchase price.
We have successfully set up the costing sheet to accomplish this. We receive a 5% overhead on the purchase price and the standard cost is calculated correctly.
The problem we have is at the journal for Product receipt. The overhead is booked on the correct GL account for absorption that we specified in the costing sheet. But the amount is wrong. The amount is 5% of the purchase price ,+ 5% of the 5% overhead.
So if the purchase price is 100 and the overhead is 5, 5,25 is booked on the overhead account in credit. Then 0.25 is booked as debet on the price difference account. The inventory account is calculated correctly, but the customer wants to follow up on this and have the correct amount booked in the absorptions account.
Any ideas what the problem can be?
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