Challenges in maintaining Standard Cost(07) method
Hi,
Current Scenario: Standard Costing method(07) is used as cost method for Purchasing & Sales/Inventory in Item Cost Revisions.
Purchase : Agreement Master is used to maintain all contracted purchases with cost & and given quantity. Non-contracted purchases are happening at different cost. POs are received accordingly using different order types.
Inventory : Whenever contract gets expired, the new cost as per new contract is updated in Standard Cost(07) of raw material for contracted items. For non-contracted items, a cost is maintained as Standard Cost(07).
Sales : Same as Inventory
[Note: Manufacturing is based on Standard Costing(07) method. Standard Cost(07) roll up is done almost daily as the Bill of Material (BOM) is structured with many levels and semi-processed which is built in the middle level of BOM is serving as common items to many finished goods. it is not easy to identify the next up-level items in the BOM which are affected due to STD cost(07) revision of raw materials]