Stocking Type & Cost Method

[ivye]

Hi List,

I am new in Manufacturing but not in Distribution. I have 2 questions:

1. What is the correct or ideal Stocking Type if i have an end item A (manufactured) that made up from raw material B, C and D. I am confused as when should i use M (Manufactured), S (End Stock) and 0 (Phantom). Can someone explain?

2. If item E is manufactured, normally the cost method will be 07 (Standard Costing). Is this standard business practice? Now say, item E is made up from F and G whereby F and G is raw material with Cost Method 02. Will item E cost will be the total of cost for item F and G with cost method 02?

Appreciate someone could explain on the above.
Thank you in advanced.

 

[Krofire.com]

I suggest you use a Stocking Type of "M" for Manufactured and "P" for Purchased to keep things simple. Do not use "S" or "O" unless you know what you are doing. For Costing and MRP the first character of the UDC's second description should either be and "M" or "P" to indicate Mfg or Purch. This tells the system to explode beneath that level. The actual value of the Stocking type itself is not always important.

You can choose to roll the 07 Standard Cost for a Mfg item from the 02 Cost of a Purchased Item, in the BoM, if you sent the Processing Options correctly in R30812 (Cost Roll Up). JDE Supports Standard Costing and Actual Costing. You don't have to use 07 but it is useful for most Business's so they can get Variances out of WO Processing.

 

[ame]

Hi there - I am not a mfg expert, but here's what I know...

1. Item A would be M for manufactured... Items B, C, and D would be S
items... you would use 0 for possibly a middle item that you don't stock...
for example.. Item B might be actually made from items X and Y.. you stock X
and Y, but you don't stock B...

2. Item E will continue to have 07 cost. When the accounting is actually
done after work order completion... the variances (differences between 07
and 02 costs) will be captured there...

Let me know if this helps. thanks, Bobby







I am new in Manufacturing but not in Distribution. I have 2 questions:

1. What is the correct or ideal Stocking Type if i have an end item A
(manufactured) that made up from raw material B, C and D. I am confused as
when should i use M (Manufactured), S (End Stock) and 0 (Phantom). Can
someone explain?

2. If item E is manufactured, normally the cost method will be 07 (Standard
Costing). Is this standard business practice? Now say, item E is made up
from F and G whereby F and G is raw material with Cost Method 02. Will item
E cost will be the total of cost for item F and G with cost method 02?

Appreciate someone could explain on the above.
Thank you in advanced.


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