Production cost

Hi,

There is issue facing in production. finish goods cost showing zero value,

While diagnose the issue I discovered, user has not ended the semi FG. Done report as finished and finally end the FG production.

example as follows.

Cycle is Finish Goods

BOM CYCLE

A. WHEEL Semi FG

B. CHASIS Semi FG

C. HANDLE Semi FG

D. ACCESSERIES Semi FG

BY MISTAKE USER HAS NOT ENDED PRODUCTION ORDER FOR SUB ASSEMBLIES, ONLY MADE REPORT AS FINISHED, and ended finsih good product.

UNLESS SUB ASSEMBLIES NOT ENDED, COST WAS NOT POSTED TO SUB ASEMBLY THUS CYCLE cost value is showing 0.

Is any solution to bring back finish goods cost.

Timely comment will be hight appreciable.

After ending the sub assembly production order, do an inventory recalculation.

Thanks Kanthi,

I run recalculation, but no effects on cost. Is there any other solution?

Thanks Kanthi,

I run recalculation, but no effect on cost. Is any other solution?

what is the costing method?

You need to end the final production order consuming the sub-assemblies as well and then recalculate.

And the WIP cost depends upon the estimated/actual flag in the parameters, but the final cost is only ever posted on the reversal of WIP at the ending of production.

FIFO method

So a couple of things.

  1. You have not ended the parent item

  2. You have yet to invoice the raw materials

  3. Even after 1 and 2 you have yet to run the inventory close.

Thanks for reply,

Can it possible to after closing inventory we will get proper cost. Though we have sold that parent finish good.

Thanks & Regards,

Yes the inventory close will push through all levels and adjust the COGS posting for the sales order.

Thank you very much Adam,