Costing of Formula items and Co-Products

Finance and Operations/AX User Forum
1

We are using AX 2009 with process manufacturing.

The scenario is - Raw material will be send for the Sub Contracting.

The outcome of that process would be two items - one “X” item of formula type and “Y” of type co-product.

My configuration is like this.

I have created a formula Item of Product Type - None ( "X " - item)

for that i have added the raw material, service item and a Co-Product(“Y” - Item).

And i have given some cost allocation percentage to Co -product. say 10%

Logically seeing the co - product cost will be 10% total cost (Raw material + service cost + over head if any).

But i got a requirement - that the service cost and over head cost should not be added to the cost of co-products.

Means the it should be 10% of the raw material cost.

Is this possible ?

2

I do not believe you can set the cost allocation to 10% and have the 10% not include service and overhead, it is, I beleive simply a 10% cost allocation. If it was a By-Product you could add in a burden and thereby reduce it, but you cannot ignore elements to my knowledge, but not something I have really tested.

3

Hi Adam,

I do believe the same - but need to have a second opinion on it.

4

Hi Adam,

What i mean of second opinion is that - your opinion.

And i got that - thanks[:)]

5

No problem [:D]