Question

Cost Break Down for Purchasing and Manufacturing Good

  • 19 June 2023
  • 5 replies
  • 97 views
G
Rank
Userlevel 6
Badge +10

Hi,

What is the best approach to track Cost Break Down for Purchasing and Manufacturing Goods in IFS, without maintaining two parts for the same product?

Maintaining two parts is creating problems with Customer Order handling.

Thanks

 

5 replies

F
Rank
Userlevel 6
Badge +17

Hi @GayanD ,

You can use the Inventory Valuation Method as Standard Cost & Inventory part cost Level as Cost per Lot. By using this setup the cost will be captured per lot and if you see the cost difference between purchased & manufacturing by using the lot/batch no against which it is received. You can also use Lot/batch Tracking as Order Based in the master part then lot/batch no will be generated automatically while receiving the order as concatenation of order no-line no-release no.

Regards,

Mithun K V

G
Rank
Userlevel 6
Badge +10

Hi Mithun,

Thanks for the input.

Is it possible to use Weighted Average Costing instead of Standard Costing in this case? According our accounting principles standard costing is not an option.

F
Rank
Userlevel 6
Badge +17

Hi @GayanD  ,

Yes, you can use Inventory Valuation Method as Weighted Average & Inventory part cost Level as Cost per Lot.  This is gives the weighted average cost for the respective lot.

Regards,

Mithun K V

 

G
Rank
Userlevel 6
Badge +10

Hi @EqeMithuV 

How this will affect if we have configurable parts and need to have Cost Per Configuration ?

Thanks

Gayan

F
Rank
Userlevel 6
Badge +17

Hi @GayanD ,

Then you will have a cost per configuration which means when a new configuration for a part is either manufactured or purchased the cost of it will be treated as the standard for the configuration ID and the subsequent purchasing or manufacturing of the same configuration will have the same cost.

Any difference to this standard will be triggered as variance.

Regards,

Mithun K V

Reply


Terms & ConditionsCookie settings