Co part costing/ unknown output - Seeking help for customization

[andrew.phiss (andrew)]

hi everyone,

Our product is leather is produced from Raw skin

For example,
Part no. Part name
RWSK = Raw Skin
SPGDM = Sheep Grade Mix
SPGD01 = Sheep Grade 1
SPGD02 = Sheep Grade 2
SPGD03 = Sheep Grade 3

my problem is that we couldn’t know the grading of leather when we create job order and so we use part number of SPGDM (Mix grading) to create job order. After production completed, we first complete the job order and then create another job order received material from previous job order to convert it into specific part such as SPGD01, SPGD02 or SPGD03.
This way basically fulfill what we require, however, too many steps and time consuming.
Someone suggest us to record the grading in Lot, however, we need to combine part code with specific grading for easier managing selling price control.

Now we find the function of co part fulfill all our requirements except the costing method must calculated by material/labour cost X factor (yield per). instead of actual quantities completed during the production.

Please advise how to customize the formula or another way can do for us.

Many Thanks

[jkane (John Kane)]

Have you looked at using Salvage instead? You can better control the cost of the material that way in my opinion.

[andrew.phiss (andrew)]

Thanks it seems salvage can do what I need. I’ve tested but fail to generate cost to salvage part. Does it have any special procedure I need to set up before use ? Thx

[Vinaykamboj]

Cost of Salvage material has to be defined in the MOM of the main part being made.

Vinay Kamboj

[jkane (John Kane)]

The cost can be set on the job too.

Since you have different grades, you could adjust the salvage part and cost to whatever you needed before completing the job.

[andrew.phiss (andrew)]

I have already set the cost on the job as following picture.
But when I complete the job receveipt of salvage part, the cost can not be shown on the Inventory WIP Reconciliation Report. If I need to set up another special procedure?