I am dis-assembling a chicken into leg, breassst, wings, drum stick etc. When i disassemble some wastage also produces. I want to allocate cost of wastage on finished goods based on quantity or value of finish goods (i.e. leg, breassst, wings etc.) . How can i achieve this in AX.
I have configured following:
Created chicken as production type = None
Created leg, breasst, wings, drum sticks as production type = Co-products.
Created wastage as production type = By-product.
Created a Chicken planning item of production type = Planning item
Next i created a formula for planning item and set Chicken as its line item and Leg, drum stick etc. as its co-product and wastage as by-product. I also set wastage as Burden and set calculation as percentage.
Now when i create a batch order to process it, production module does not allocate cost of wastage to co-products produced.
Any idea how to allocate cost of by-product is allocated to co-products.
Below I have shown screenshots of Item Formula and Co-products. I have used TCA method and set cost % per for each co-product and burden of by-products.
What does the estimate costs show you? If you press estimate cost in the co-products form what is it telling you as the cost allocated is 0 at the moment. Are you looking at the RAF stage of a batch order after you have created this formula?
Estimate cost shows following cost details of co-products. I want that if a particular co-products is produced in more qty, burden of by-product is applied to its cost and not other co-products.
Whereas RAF journal only takes good quantity, which does not match with batch order consumed qty. Where production details–> Cost shows follwoing details. Here co-product cost allocation differs a little from above estimated cost. I have no idea why?
Planning item has a CW item (having nominal (9kg), min(7kg) and max(11kg) weights) in its formula line as its raw material. And formula also contains estimated co-product quantities based on the nominal weight (Kgs). So when a production order is created, user consumes actual weight that will differ from nominal weight. RAF shows estimates net meat qty based on the Nominal weight (9kg) of formula line item and not the actual consumed weight (e.g. 11kg). So in RAF user is not allowed to report good quantity more than the nominal weight (9kg). If we check Co-products variations in formula, then system does not stop user from reporting good qty more then the consumed qty,
Any idea how to manage or control no access or less reporting in batch order based on consumed qty.
Yes the allocation of the cost as standard takes the cost attributed to the finished product and then applies the allocation elements. In your first post you said you wanted to know how, but now it seems it is allocating not to the way you want.
As for your second part the estimate is the estimate at the time of estimate, it has nothing to do with consumed, but if you look at the costing sheet and switch to actual it shows you this as will the production posting. Ultimately you report what you report, but if you want less you end the job and it considers this complete and allocates the cost in that manner.
When you say “allocation of the cost as standard takes the cost attributed to the finished product and then applies the allocation elements”. Does this mean that AX will calculate item cost of finished good as its standard cost + burden. I am not able to see item cost with burden because i face error " WIP issue does not exist" when trying to END a batch order. I am trying to resolve the error.
No I did not mean “Standard cost” because this would only apply to standard costed items, I was not specific about which cost because it depends upon the costing method, I said that as standard the system takes the finished cost of the item and applies the allocation elements, but it does this at the cost level defined in the costing sheet, so if you at something to routing it adds it when the routing is posted.
Your error message means your posting profile WIP issue is empty, and depending upon your posting setup in the production parameters you need to add it in.
Can you explain the mechanism that how AX calculate actual total cost allocation percentage which is different from user provided TCA percentage. assuming that my valuation method if moving average
With the percentage it uses the defined percentages to allocate, with TCA it apportions it, so ultimately the cost will depend upon the transactions so a moving percentage not fixed.
