how to manage one Semi Finished Item Price for different Finished Items?....

(0) Share

Report

Posted on by Community Member

Hi All,

today i have new problem.

actually in our factory, we have some semi-finish items (for example item#11101) which are used in different sizes of finished goods. i mean suppose we are selling Fan as a finished good. this item contains some semi-finished items which make FAN. and as we know that FANs have different sizes like 24 inches,26 inches and 28 inches.

what i want that suppose i am using an semi-finish item ( item#11101) in all above mention FANS, i want to use the different rates for different FAN sizes for the same semi-finished item(11101).

suppose for 24 inches FAN, i want to use this semi-finish item rate RS. 20

for 26 inches FAN, i want to use this semi-finish item rate as RS 30

for 28 inches FAN, i want to use this semi-finish item rate as RS 35

i mean that i m using same semi-finish item for different FAN sizes with different rates. how can i do this using AX2012 R2?

anyone can help me?

plz

thanks

Regards,

Hassan

*This post is locked for comments

I have the same question (0)

All responses (6)

Answers (0)

Rahul Shah 2,696 on at

Like (1)

Report

RE: how to manage one Semi Finished Item Price for different Finished Items?....

Dear Hassan,

Cannot you create a three different configuration for the semi finished goods and then you can maintain three different prices for the same?

With this approach, you may also need to consider to define three different BOMs (or may one configurable BOM) where different configuration of the semi-finished good can be linked to the size of the finished good.

Regards

-Rahul

Was this reply helpful? Yes No
Weaveriski 23,616 Moderator on at

Like (1)

Report

RE: how to manage one Semi Finished Item Price for different Finished Items?....

The cost of the item is the cost of the item depending upon your costing method. If they all cost the same price and have no overheads they will all be the same price.

I would question why the value of the same component increases depending upon the finished product, but you could increase this through indirect cost structuring and production.

Cost by component element as Rahul indicates, or use three different items to represent the semi finished item and the costing sheet adds indirects depending upon the type. If it really is the same item then the cost is the cost.

Was this reply helpful? Yes No
Community Member on at

Like (0)

Report

RE: how to manage one Semi Finished Item Price for different Finished Items?....

Dear Steven.

i really like your question but my management made the decision like this. you are right that if the semi finish item is same then why there is difference in finish goods. i am also confused in it.

but this time, i really need the solution for this. can you give me any suggestion for this?

Was this reply helpful? Yes No
Muhammad Rizwan Idrees on at

Like (0)

Report

RE: how to manage one Semi Finished Item Price for different Finished Items?....

Have you tried making Kit with item 11101 for different sizes? https://technet.microsoft.com/en-us/library/dn497863.aspx

Was this reply helpful? Yes No
Suggested answer

guk1964 10,888 on at

Like (0)

Report

RE: how to manage one Semi Finished Item Price for different Finished Items?....

You have to consider the accounting entry - if you increase the cost then where do you want the change in inventory value debits and credit to go?

If you run average costing then what will month end close do to the calculation?

So option1 is to convert form one value to the other by using multi item codes e.g. via a phantom relationship or- otherwise with the same code averaging costing is going to recalculate.

Option 2 is a size specific overhead in the bom cost sheet

Option 3 maybe the simplest is to create a dummy service item for cost collection purposes - give it a unit of EA and a price of e.g. 1 and add as many units to the BOM as you need to put the cost where you want it. For this to work the model group has to have the stocked item checkbox ticked even if its a service item.

Was this reply helpful? Yes No
Weaveriski 23,616 Moderator on at

Like (0)

Report

RE: how to manage one Semi Finished Item Price for different Finished Items?....

[quote][/quote]

my management made the decision like this. you are right that if the semi finish item is same then why there is difference in finish goods. i am also confused in it.

but this time, i really need the solution for this. can you give me any suggestion for this?

The management understood that the same item could not be consumed at a different cost based upon the destination kit, therefore there is one cost for the item. If they did not understand this how did they make the decision?

You could cost by variant, but it is pointless, it is the same item, not a different variant. Only when it is used do you care. The only way I can see this is through application of an indirect overhead to the process depending upon the finished product and not a direct impact on the raw material or the costing flow.

Was this reply helpful? Yes No