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# Adjusted Cost of Items not getting applied to main item

Member Posts: 229
edited 2012-09-13
Dear All,

Requirement is Item XXXX has 2 items YYYY and ZZZZ as Bill of Materials.

So 1 XXXX requires 1 YYYY and 1 ZZZZ, which is set in Bill of Materials in Item Card of XXXX.

YYYY has opening stock as on 31st March 2012 as 3 Nos. with 50000 each.
ZZZZ has opening stock as on 31st March 2012 as 4 Nos. with 30000 each.

YYYY was purchased as on 31st May 2012 as 4 Nos. with 55000 each.
ZZZZ has opening stock as on 31st May 2012 as 2 Nos. with 35000 each.

YYYY has opening stock as on 10th June 2012 as 3 Nos. with 60000 each.
ZZZZ has opening stock as on 10th June 2012 as 4 Nos. with 40000 each.

Now weighted average cost of YYYY is 53750.
Now weighted average cost of ZZZZ is 33750.

Now using BOM Journal if XXXX is posted for 3 nos.,

then Cost of XXXX calculated to 262500,

then Cost of YYYY taken is 150000
then Cost of ZZZZ taken is 90000.

Difference of Cost in XXXX to total of YYYY and ZZZZ is 262500 - (150000 + 90000) = 22500.

This difference is due to adjustment cost of YYYY and ZZZZ.

If cost is adjusted in YYYY and ZZZZ, then why the cost is not adjusted in XXXX. As per accounting standards, cost of XXXX should be 240000 instead of 262500.

Can any one explain if there is any mistake in configuration setup?
Thanks & Regards
Santosh
Where Stones can be transformed to Gold