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Material Ledger is not to be used for this reason.... hence can't go ahead with suggested solution
| | | ---------------Original Message---------------
From: mustafa sakerwala
Sent: Wednesday, August 17, 2011 1:36 PM
Subject: Costing based on actual consumption without using Mat ledg/ Actual Costing
Hi
My client (Pharma Industry) has a requirement to valuate the materials using actual consumption (qtys) and actual Rates (MAP / Actual activity Rates / Actual overhead rates). To a large extent we were able to cater to the Actual Rates. However we are now stuck with a major problem of how to take variances in actual qty consumption into account for valuation. Please note that we are dealing with multi-level, co-product, scrap, etc. complexities.
I would like you guys to help me to find a best way to approach this. Ultimately, the Costs of Goods Sold is reflected in the Gross Margin Report which currently is based on the costing run results (Standard BOM/Routing with Actual Rates).
Also it was decided to not to use Material Ledger / Actual Costing module because these requirements are required for Statutory requirements.
Please help.
Would be glad to give any further information should you desire. |
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