Hi,
I simulated a test case in a test environment to investigate the difference between Shop Order Costs and Project Monitoring costs in IFS Cloud.
The test case was as follows:
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Part A was added to project demand using request type Project MRP.
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A parent Shop Order was created for Part A, requiring 3 pcs of Part B.
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A child Shop Order was created for Part B to produce 3 pcs as project inventory. For the purpose of this test, I modified S of Part B by adding a high-cost component. This was done intentionally to make the cost flow and any differences between the child and parent Shop Orders clearly visible.
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There was no DOP connection between Part A and Part B.
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The child Shop Order was completed, and the 3 pcs were received into inventory.
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I then issued these 3 pcs directly from inventory to the parent Shop Order.
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Both Shop Orders were connected to the same project activity.
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The parent Shop Order was then completed.
The costs shown in Shop Order Costs are:
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Child Shop Order B actual accumulated cost: approximately EUR 40,000 in total, or EUR 13,333 per unit.
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Parent Shop Order actual cost: approximately EUR 16,000. There were also some other components, but most of the cost was related to Part B.
Project Monitoring shows the project-related costs correctly, and the child Shop Order also shows the actual accumulated cost of approximately EUR 40,000.
Based on this test, my understanding is that the actual cost of the child Shop Order is not transferred directly to the parent Shop Order. Instead, the parent Shop Order uses the Inventory Part unit cost of Part B when the parts are issued from inventory.
The Inventory Part is configured with:
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Inventory valuation method: Weighted Average
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Cost level: Cost per Part
There was already stock of Part B in inventory with a different project connection before the test. The existing stock had a normal value of approximately EUR 20 per unit. After completing the test case, the Inventory Part unit cost increased from approximately EUR 20 to approximately EUR 5,000 per unit.
The following actions were also completed:
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The Aggregate Shop Order Costs per Shop Order job was run.
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Both Shop Orders are in Closed status. Calculate Order Costs / Refresh Overview Unit Cost was used.
My understanding is that, with Weighted Average + Cost per Part, the parent Shop Order uses the current Weighted Average Inventory Part unit cost for the issued component. The actual cost of the child Shop Order is therefore not transferred directly to the parent Shop Order’s actual cost. Instead, it affects the Inventory Part valuation through the inventory receipt and Weighted Average calculation.
Is this understanding correct?
If so, is it expected that the Shop Order Costs view does not show the complete actual manufacturing cost of the finished device in this type of non-DOP, project-inventory scenario? In this test, the child Shop Order cost approximately EUR 40,000 to produce, while the parent Shop Order shows only approximately EUR 16,000. Could it be achieved with different Inv part or other settings?
If any additional information is needed to answer this question, please let me know.
Best regards,
VV