Hi
In the production module, the system post following accounts when end the production order.
- Issue
- Issue offset account
- Receipt
- Receipt offset account
From my understanding, all the raw materials will be posted into “Issue” account, and all the finished product will be posted into “Receipt” account.
The point is the “Issue” and “Receipt” are not equal, cause the “Receipt” maybe posted base on the estimated/standard cost.
By the end of month, we will know the actual cost of production, which is consisted of “Materials”, “Salary”, “Machine” etc.
How to adjust cost for the finished product ?
Which inventory model should be used by the finished product ?
(AX 2012 R3)
You should be capturing (if required) machine cost, labour cost, fixed and variable overheads. These all come at different levels, but the costing sheet does the overheads, you can set prices per person - more accurate if employees logon, but you should configure your accounts to enable a salary/production absorption comparison and then financially know what to do with the difference. Material costs flow with the update of purchase invoices and the inventory close process. Basically you configure AX to do what you want to do depending upon your requirements and processes, and then AX updates the finished product - there is no need to “adjust” it in these instances, just set the system up to cost properly.
Costing method of the finished product is up to you, what your business wants to see from a financial perspective. None of them are “wrong” some are just more applicable to your business and business requirements.