Impact of OPM Costing Based On By-Product Type (Doc ID 2531544.1)

Last updated on MARCH 17, 2021

Applies to:

Goal

OPM Formula has 4 types of By-Products namely Rework, Sample, Waste, Yield
For costing, Product Cost = Cost of Ingredients - Cost of By Products
Is this applicable irrespective of the By-Product type?
Impact of sample - and the sample item has to be the same as product.
Thus how is it expected to be handled in costing? Would the sample cost be reduced from the product cost? OR the sample cost would be absorbed into the product cost?

For other 3 types, does the formula remain the same or is the formula applicable to only by-products of type "Yield"and "Sample"?
 

Solution

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