2 Replies Latest reply on May 30, 2016 6:56 AM by 3150104

    Resource cost in WIP job

    3150104

      Hello Everyone - I have a query on how resource cost gets accumulated on a WIP job. Here i am explaing a scenario.

      Let say i created a BOM (TEST_BOM) which requires two operations OP1, OP2 inorder to complete. And operation OP1 using resource  R1, R2. R1 is of charge type Manual, and R2 is of charge type WIP move. OP1 using 2 unit of R1, and 3 unit of R2 simmilarly operation OP2 consist of resource R3 (Manual charge type , 2 unit), R4 (WIP move charge type,  3 unit).

       

      So when i roll up the cost for TEST_BOM then (2 units of R1 and 3 units of R2 + 2 units of R3 and 3 units of R4) cost gets applied in the final cost of TEST_BOM and final cost becomes 1000 INR.

       

      But when i create my WIP job (TEST_WIP) for creating the BOM (TEST_BOM) at that time i used 1 unit of R1 and 1 unit R3 as both R1 and R3 resource is of charge type manual. Hence my Question is when i complete the WIP JOB then cost of the WIP job should consider 1 unit of R1 and 1 unit of R3 or it will consider the units mentioned in BOM Routing. ?

       

      If you need further clarification u can mail me on deepaktcs2010@gmail.com.

       

      Thanks

      Deepak.

        • 1. Re: Resource cost in WIP job
          J Reinhart

          That is set up related.  If set to use standard costs, it will use the 2 of R1 and 2 of R3 as stated in the BOM.  If actual, it should use the 1 of R1 and 1 of R3 as entered by the shop floor staff. 

          • 2. Re: Resource cost in WIP job
            3150104

            Hi J Reinhart - Yes we are using standard cost organization. And you are right when i complete the WIP job it is taking the resource units as mentioned in BOM routing for example 2 units of R1 and 2 units of R3. But in WIP job i used 1 units of both R1 and R3, so where will this cost be compensated and how oracle will adjust the cost of 1 unit of R1 and 1 unit of R3 which i did not use in WIP job. Please clarify.

             

            And i could not understand your statement " If actual, it should use the 1 of R1 and 1 of R3 as entered by the shop floor staff. " - please explain.

             

            Thanks

            Deepak.