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Finance | Project Operations, Human Resources, ...
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Production with CoProducts

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Posted on by 584

Hi. A sizeable part of our business involves the slitting of steel coils into smaller coils.  An example is splitting a 940mm width coil (weight about 3 tonne) into 2 x 280mm and 1 x 340mm coils.  I can achieve this in AX2012 using formulas and co-product functionality whereby the production order is for the slit remnant/waste (40mm), and the co-products are the slit coils above.   The issue we have is that we want to be able to do a Formula calculation that will roll-up costs from the 940mm coil (std cost in KGs) to the slit remnant and each of the co-products. (ignore routes and costing sheets for now) .   The co-product functionality has an ability to split costs however it wants to share the cost by proportion of the output.  Reality is that the std cost per kg does not change because of the slitting process.  If we were to change the unit of measure for the slit coils to lineal metres then the concept of proportioning by metres output would be OK.    Are there any suggestions for a better approach to this issue?   Our goal is to be able to 1) create a production order with a single coil as input and multiple coils as output and 2) run the formula calculation and have it roll-up the std cost to the multiple output coils.  Many thanks. James

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  • Dolores Young Profile Picture
    on at

    Hello James,

    Could you use this

    docs.microsoft.com/.../methodology-total-cost-allocation

    Regards

    Dolores

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