Digest Number 3097

can't you have a job

materials = raw steel

operations
1. forge
2. treat
3. machine

?? I know it can't be this simple sorry. I do not think I understand the
problem



Frank Zeigafuse

Innovative Office Products

General Manager

Direct Phone: 610-559-6369

Email: fzeigafuse@...



-----Original Message-----
From: Bruce Butler [mailto:bbutler@...]
Sent: Monday, November 29, 2004 4:13 PM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] Digest Number 3097


We deal with this a lot. Typically we purchase the material direct to
the job.

Bruce Butler, IT Manager
Knappe & Koester
18 Bradco St
Keene, NH 03431
bbutler@...
p.603.355.1166
f. 603.355.2266

________________________________________________________________________
________________________________________________________________________

Message: 1
Date: Wed, 24 Nov 2004 14:28:04 -0500
From: "Jasper Recto" <jrecto@...>
Subject: Production Question

We have a situation and I'd like to see if how some people might handle
this.

We have a part that starts with a forging. That forging must go to an
outside vendor service for treatment as a first operation. It then
comes back to us for machining.

What we do right now is we by the raw steel for the forging and have it
directly delivered to the foundry to create the forging. It comes back
to us and it goes to another vendor for treatment.

My question is, how would we be able to keep the cost of the forging and
the raw steel together. We purchase the raw material but never
physically receive it. We purchase the forgings but the unit cost is
just for the labor, not the material. So when the forgings are received
back to us, the unit cost is incorrect because it does not take into
account the cost of the raw material.

Also, in order to close out the PO's for the raw material, we must
receive them even though the actual material is not in our inventory.
We then issue the forgings to the job for treatment and machining.

The cost of the job is incorrect because the raw material what never
part of the job. Any ideas on how to get the cost of the raw material
in the job?

Thanks,

Jasper





[Non-text portions of this message have been removed]



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[Non-text portions of this message have been removed]
We deal with this a lot. Typically we purchase the material direct to
the job.

Bruce Butler, IT Manager
Knappe & Koester
18 Bradco St
Keene, NH 03431
bbutler@...
p.603.355.1166
f. 603.355.2266

________________________________________________________________________
________________________________________________________________________

Message: 1
Date: Wed, 24 Nov 2004 14:28:04 -0500
From: "Jasper Recto" <jrecto@...>
Subject: Production Question

We have a situation and I'd like to see if how some people might handle
this.

We have a part that starts with a forging. That forging must go to an
outside vendor service for treatment as a first operation. It then
comes back to us for machining.

What we do right now is we by the raw steel for the forging and have it
directly delivered to the foundry to create the forging. It comes back
to us and it goes to another vendor for treatment.

My question is, how would we be able to keep the cost of the forging and
the raw steel together. We purchase the raw material but never
physically receive it. We purchase the forgings but the unit cost is
just for the labor, not the material. So when the forgings are received
back to us, the unit cost is incorrect because it does not take into
account the cost of the raw material.

Also, in order to close out the PO's for the raw material, we must
receive them even though the actual material is not in our inventory.
We then issue the forgings to the job for treatment and machining.

The cost of the job is incorrect because the raw material what never
part of the job. Any ideas on how to get the cost of the raw material
in the job?

Thanks,

Jasper





[Non-text portions of this message have been removed]



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