Product Cost by Quality

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Product Cost by Quality

Post by sdcub » Thu Feb 12, 2015 9:29 pm

We have a scenario wherein we intend to cost our Finished goods by Quality ie Quality 1, Quality 2 and Quality 3 for a product needs to have a different cost.
What this means is that for a unique finished good, we plan to have a different number range each for Q1, Q2 and Q3 product(different material type but exactly the same description).
The reason is 2 fold:
(1) Individual numbers enable us to maintain different costs segregated by Quality
(2) Each Quality has certain slightly difference manufacturing tolerances(more an internal characteristic than external) and different numbers enable easier identification.

The question is this:
We typically create a Process Order for the Q1 Finished good.We need to be able to receive Q1, Q2 & Q3 products against the same process order(qty sent out by our Packout systems).

Have any of you managed a similar requirement?? We do not want to open a process order for each Q1, Q2 and Q3 version of the same finished good as this would tremendously increase workload as well as complicate yield tracking ....

Any suggestions???

Thank you

Posts: 171
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Location: South Africa

Re: Product Cost by Quality

Post by JohnnyB » Wed Mar 11, 2015 3:29 am

Hi there

This sounds like a rather unusual, yet very interesting request. I do not have a solution for you, but maybe just some food for thought:
  • For costing purposes, you could create several production versions for the same product which are only valid for costing and which allow you to do separate costing runs. No need for separate codes.
  • It is possible to use quote arrangements for production, i.e. to achieve a (planned) split between your production of Q1,Q2 and Q3.
  • If you really want to stick to only one process order for Q1, you could investigate adding Q2 & Q3 as by-products/co-products to your BOM for Q1.

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