Applying a cost for a unique item.

Mike_B

I need help of applying a cost for a unique item.

We manufacture an item. We send this off site to be filled in to plain aerosol cans. When the cans come back we apply a label and sell.

How can I set up the part number so we consume the correct raw materials and apply the filling cost of £1 per can.

We currently manufacture the raw material, send it off site (but not book of the computer) then when the finished cans come back we consume raw materials and label and output finished product. I don’t know how to apply the £1 so it will be added to the std cost on the item card? I was going to create £1 route but this would then post to labour and I don’t want that.

Any ideas?

AdamRoue

Hi

Isn't it slightly irrelevant if you are standard costed? You make the standard cost the standard cost. However if you want to post the correct variances then you need to have a subcontracting operation in the route which will generate a purchase order with a cost of £1 for the service provided. Not really sure which part you do book in on the system, so it is a little difficult to comment on the actual processing.

dmitrip

Hi,

I think you need to create two production orders.
The first will consume raw material(s) and will have a subcontracting step.
The second prod. order will consume the output from the first plus all packaging materials.

Certainly you can use one prod. order with two lines in it as well.

For the part numbers it can be as following:
1. Raw Material Items.
2. Intermidiate Items. The items you send off site. They are the output of the first prod. order and the input for the second.
3. The packaging and finish good items.

Regards.