My issue is that DOP/Configured parts manufactured costs that have setup time on routings are bouncing around based on quantity lot size. When the cost changes for a new order of the same configuration, the shop order standard cost is updating with a new standard based on the effective date. The result of having a standard cost associated with a quantity of 2 being applied to a different order for 672 creates a significant variance for margin calculations.
We use DOP orders for our configured parts, so our planning method is “A”. Even though they are configured, we manufacture like parts and therefore we want to smooth out setup costs by a fixed std lot size. I processed an item for a quantity of 1 but have the std. lot size set to 62. When the DOP and pegged shop orders calculate cost, it is based off of a unit of 1 and not by the 62.
Is there a way to have a different denominator for setup on DOP parts for calculating costs and related standards?