Cost of Multiple Output

I have one scenario, that is, more than one products can be generated from one production order. It is something like process manufacturing. A possible solution is using product family. It works fine. But if one output products need some extra process, I got problem. The trouble is Navision doesn’t add the extra cost for this specific item. The extra cost is divided by all the output products. For example: Family 1 — Item1 Qty 1 ---- OP10, OP20, OP30 — Item2 Qty 1 ---- OP10, OP20 — Item3 Qty 1 ---- OP10, OP20 Cost for OP10 is $100, Cost for OP20 is $200, Cost for OP30 is $60, Capacity Cost for every item is (100 + 200 + 60)/3 = $120 Actually, the correct cost should be: Item1 (100 + 200)/3 + 60 = $160 Item2 (100 + 200)/3 = $100 Item3 (100 + 200)/3 = $100 It seems standard Navision cannot solve this problem. But I still post this scenario here to look for some possible solutions. [:p]

That again needs a further requirement accessment whether this division is required just to have a statistics or it is to be reflected to the balance sheet. In the later,More work around is required as you have to modify posting routines. In the first case, You can just add on division by percentage on the Production order statistics.It only need reconsillation at every period ending. Pl. elaborate which one you will prefer? Regards, DD

A production family is a group of individual items whose relationship is based on the similarity of their manufacturing processes(Routing). In your case the Routing is not the same for all the three items. Instead of grouping all the three items (1,2,3) as one family, just group Item2 & Item3 as one family. But this solution will not solve your process manufacturing production scenario problem. You will have to change the coding to handle the process manufacturing production cases and postings.

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Originally posted by dharmendra
That again needs a further requirement accessment whether this division is required just to have a statistics or it is to be reflected to the balance sheet. In the later,More work around is required as you have to modify posting routines. In the first case, You can just add on division by percentage on the Production order statistics.It only need reconsillation at every period ending. Pl. elaborate which one you will prefer? Regards, DD


Hi, dharmendra and srini_shetty, thanks for your reply. My purpose is to record the cost of specific item, not only effect the production order statistics. It seems that I have to modify the posting routines. That’s too complex, and not I want. I am just thinking a soluting is defining a new item to present item1’s semi-manufactured goods. So the whole routing split to two routings. I think it works and I will test later. :slight_smile:

Hi WW S I dont think this will solve your problem as well. The only possible way is to setup the items under standard costing and having these as -ve consumption in ur BOM. If not you will need atleast 2 months of work to modify the system to do the costing for By-products and Joint-Products based on the amount of Production cost incurred upto the Output of the item.

Hi,Prashanth I have tried to use negtive quantity in BOM. Yes, it increases the quantity after post consumption journal. But I cannot track the capacity cost for these item with negtive quantity in BOM. That’s the problem.

Hi wws, with the standard navision you cannot handle the 2 Outputs, 1. You cannot allocate the capacity costs or Production costs either in Parts or equally to both items. 2. You can only hanlde BY-products (meaning, these type of products do not take any part of the Production cost). Theoritically these are valued at an existing market value. 3. If they share the production cost then they r Joint Products. You cannot allocate costs. If at all you want to do them you have to customise navision a lot. As good as making in a whole new verticle.