richchipper
Well Known Member
Trying to find a workaround and searching pros and cons:
We have a two (or more) step process for manufacturing items - we call one our "bulk" and the other "finished goods". Generally, with new projects, our raw materials for the finished goods have to be ordered significantly ahead of the bulk raw materials. For instance, a glass bottle from Europe may need 240 days lead time while an ingredient only need 60 days.
When completing our ECO process for the finished good, our cost accounting team doesn't want to approve because the cost of the finished good will not include the cost of the bulk (labor plus raw ingredients). So, if anyone were to use the incompleted standard costs for analysis, it would be wrong. However, without a finished good ECO, there is no demand for the raw materials needed for the finished good (cap, bottle, label, etc.).
So, we did a little research on potentially using the stocking type 0 for Phantom. This way, we can avoid rolling standard costs. However, I'm not 100% sure how it will work. Does anyone have any advice on how this works and what to watch out for?
Thanks in Advance!
We have a two (or more) step process for manufacturing items - we call one our "bulk" and the other "finished goods". Generally, with new projects, our raw materials for the finished goods have to be ordered significantly ahead of the bulk raw materials. For instance, a glass bottle from Europe may need 240 days lead time while an ingredient only need 60 days.
When completing our ECO process for the finished good, our cost accounting team doesn't want to approve because the cost of the finished good will not include the cost of the bulk (labor plus raw ingredients). So, if anyone were to use the incompleted standard costs for analysis, it would be wrong. However, without a finished good ECO, there is no demand for the raw materials needed for the finished good (cap, bottle, label, etc.).
So, we did a little research on potentially using the stocking type 0 for Phantom. This way, we can avoid rolling standard costs. However, I'm not 100% sure how it will work. Does anyone have any advice on how this works and what to watch out for?
Thanks in Advance!