E1: 43: Case Study: Receiving Purchased Material (P4312) with Cost Components (P30026) (Doc ID 2948704.1)

Last updated on MAY 17, 2023

Applies to:

Goal

PURPOSE:

When purchasing material to be consumed in the manufacture of a product, it may cost a company more than the supplier’s purchase price of the item. The item’s cost may need to include additional costs such as freight, insurance, duties or taxes when accounting for the final cost of the item in inventory. In JD Edwards EnterpriseOne these additional costs are referred to as Material Burden and is explained in greater detail in Doc ID 625946.1 - Material Burden Concept, Setup, and Troubleshooting.

The purpose of this document is to provide a step-by-step example of how to setup a purchased item with cost components to account for all the costs of an item acquired for use in manufacturing, separating Material Burden and Standard Cost Variances due to fluctuations in the purchased prices charged by suppliers.

SCOPE:

This document will be beneficial to all companies using JD Edwards EnterpriseOne who purchase material for use in manufactured products.

Solution

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