How to book PO to involve material and material over head accounts
Hi Folks,
How to book PO to involve material and material over head accounts, please explain me the process in detail.
Note:- I tested the scenario as follow.
Create New Item
Assigned to Inventory Org (OU specific Org)
Created Item cost
Material cost: 100
Material Overhead: 10
Now create a PO for quantity 1 price: 125
Received the material without making and price/quantity changes
When I check the Item cost system is displaying as : 165, how system has calculated the cost in this scenario.?
And We are expecting 125 should spilit as Material and material overhead accounts 9:1 ration = 125/10= 12.5= 107.5: 12.5 ratio
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