Use for calculation option on production formula


I have the following case , I want to get the cost price for the manufactured item from the production transactions and I want to use sales agreements with the customers to define the sales prices for the manufactured items , I this case it is not important to use formula calculation to allow the system to suggest cost and sales prices for the manufactured items , is this right that the formula calculation is not important in my case??? Please advice.

Many thanks

The cost of the item is made up from the costing method adopted and the processes, you simply cannot ifnore the calculation of a formula if you are using batch orders. You could strip out the overheads from teh costing sheet, you could not use routes, this would leave you with item costs making the manufactured part, but this cannot be tied back to an agreement unless you start batch controlling and financially controlling by batch, otherwise your FIFO costing would take precedence (as it should) and use the oldest cost in inventory to apply once consumed.

Thanks AdamRoue for your reply , in my case I use the cost categories to represent the overheads and I run production batch orders without using formula calculation and the manufactured item cost represented as required , in this case the cost represented correctly without running formula calculation.