E1: 31: Enhancement for 09 Actual Costing To Enable Allocation of Quantities Basd on Standard BOM and Routing
(Doc ID 1954026.1)
Last updated on MARCH 08, 2017
Applies to:JD Edwards EnterpriseOne Product Data Management - Version 9.1 and later
Information in this document applies to any platform.
Enhancement Required as follows:
Requirement of 09 Actual costing functionality as Finished Goods and COGS need to reflect the actual cost of completion, but with added functionality as follows:
When a completion takes place (P31114), the allocation of costs to the completion needs to be pro-rated based on the original BOM and Routing, so that costs are only accumulated based on standard material issue quantities
and labour/machine hours per unit of completion, but using the flexibility of Actual Costs of the material and labour/machine.
The specific use case is that there is a two year lifecycle on a Work Order for cable and the customer calls-off in batches over the two years.
Material is issued to the shopfloor to cover a few call-offs. With current 09 costing, the first few call-offs are overstated due to the material being issued to cover a few call-offs. R31804 Variances will correct this, but this would be two years down the line, so FG and COGS are inaccurate for two years.
FG item PARENT.
BOM has 1 per of COMP @ $10/each
Routing has 1 hour per item @ $10/hr
Raise WO for 100.
Warehouse - issues 40 ($400)
Book 10 hrs labour ($100)
Complete 10 to stock.
09 cost of completion = $500/10 = $50
This is overstated by $30/unit based on pro-rate consumption of 1 EA COMP $10) and 1 HR Labour ($10).
Item is shipped at $50 and COGS processed at $50. If item has a list price of $25, this shows as a $25 loss per item, when in truth it is a $5 profit. This imbalance is only rectified when the WO is finally completed and R31804 is run.
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