Solved

Controlling/ Manufacturing

  • 1 September 2021
  • 2 replies
  • 51 views

 

I have a question about controlling in manufacturing. Do you know if and how a cost allocation / distribution to an order can be done. Our customer determines overheads based on statistical value when creating a production order. But these are theoretical costs and a kind of pre-calculation.

Is it possible to assign actual costs after post-calculation/ after completed Production Order ?

 

Thank you in advance.

 

icon

Best answer by kristianharianja 2 September 2021, 05:45

Hi, It’s a good idea if you put the cost during pre-production as an estimate. You can do this via overhead allocation that is driven either by per qty completed, machine hour, labour time, etc. You have several options in how overhead cost is allocated. When production completed this estimation will be allocated to the goods that you manufacture. When you get the actual cost you just clear off the estimation, could be by WIP Adjustment after production completed or through journal. WIP Adjustment is one of the process that is purposely to adjust production WIP amount, a process that you can use to allocate certain cost that might have not been allocated yet to the production order. 

 

View original

2 replies

Userlevel 2
Badge

Hi, It’s a good idea if you put the cost during pre-production as an estimate. You can do this via overhead allocation that is driven either by per qty completed, machine hour, labour time, etc. You have several options in how overhead cost is allocated. When production completed this estimation will be allocated to the goods that you manufacture. When you get the actual cost you just clear off the estimation, could be by WIP Adjustment after production completed or through journal. WIP Adjustment is one of the process that is purposely to adjust production WIP amount, a process that you can use to allocate certain cost that might have not been allocated yet to the production order. 

 

Thank you for your answer.

Do you know if it possible to assign the real overheads from accounts to Production Orders?

Meaning I would probably need some sort of report that takes the overheads for a given period from accounts and divides them by the number of production orders for that period. In your opinion is it possible to create such a report?

Reply


About Acumatica ERP system
Acumatica Cloud ERP provides the best business management solution for transforming your company to thrive in the new digital economy. Built on a future-proof platform with open architecture for rapid integrations, scalability, and ease of use, Acumatica delivers unparalleled value to small and midmarket organizations. Connected Business. Delivered.
© 2008 — 2020  Acumatica, Inc. All rights reserved