In our systgem, we have all of our parts currently setup as average cost. Our controller wants to turn on the checkbox in Company Setup…Production module that says “Enable Manufacturing Cost Elements” to try and keep all the costs “pure” at each level without rolling up as a material which I 'think" is what this is for. I have a document from awhile back that said that turning this on is only for parts in a STANDARD cost environment. Does anyone know if this is true or what actually happens if I turn this on and all of our parts are setup as AVERAGE cost? Anyone else have their setup like this?
Hi
I’m pretty sure this works with Lot FIFO as well, not using it at my current employer but did at last place. When you take an item that has been manufactured and issue it to another job, the 5 elements of cost (labour, burden, mtl, mtl burden, subcon) all flow through rather than the entire cost of the issued item being shown as material cost.
Test it out on your test system to be sure it works with AVG costing.
Regards
Mark