Hi All
i have created the costing sheet to incurred the indirect cost on the production orders. Here i create the BOM of one finished product, in which i include the sub BOM. Now i run the production order, and once i estimate it system create another production order for the Sub BOM.
My question here is, as now we have two production order will the costing sheet will applied on both (original and SUB BOM production order )or just on the final production order.
I make the test transaction and find that on Sub BOM production order there is only material consumed cost not the indirect cost and on the original production order, both cost (Material and Indirect from the costing sheet) is there.
So i want to know is it correct or i will get the indirect cost on the both production order.
please advise.
Indirects calculation will be applied to the group in the calculation setup and therefore it depends upon your structure and the setup of your items. In other words you can configure it to appear on one or both it is your choice on the way you structure the costing sheet.
Imran,
What is the basis of your indirect cost calculation? (e.g. is it based on a specific cost group, or a total node in the costing sheet? )
If based on a total node, are the cost groups for the materials / cost categories that comprise the SUB BOM part of that node in the costing sheet? It sounds like your finished product BOM elements must be part of that basis calculation.
OR - If based if based on a specific cost group, you may need to create a Rate / Surcharge that applies to the cost group(s) of the SUB BOM’s elements.
i have created the cost groups, and them total that group and under that i created the rate node.
that means sub bom also can have its indirect cost generated from the costing sheet. If yes please tell me how i can do that.
here is the screen shot for your reference:
Your material node would need to be split by the different materials to reflect the BOM and Sub-BOM and then the indirects need to be calculated on each split of material. Labour would need to be the same. Cannot see how you are calculating because your indirect links to your overhead value, which is presumably linked to material/labour. You need to split out labour/material to the level of differentiation required then apply the indirects at the individual split out level.
