Simple work order - add a cost component?

Hi all!
I'm trying to set up a real simple work order where the customer wants to only use one componenet to make another product (glorified reclassification) but they want to be able to manually enter/change the cost of the finished prodct. This would normally be the cost of the component item + and adjustment dollar amount

It has nothing to do with labor/hours it takes to complete the reclassification, it's (in many cases) just a revaluation of the product as part of changing the item number

The revaluation can be both negative and positive

So they use 10 units of component product with cost of 100/EA and want to put it in inventory as 10 units of another finished prodct with cost 90,5/Ea. The will create manual JE:s for the difference amount and book it into different accounts based on the reason for the reclassification

They currently use reclassifications to do this and override the "to" cost on the reclassification document but the requirement is to be able to schedule these reclassifications and using work orders we could do that.

However, i'm a bit unsure what would be the easiest way to get the "revaluation component" to the work order without having to set up a routing for each item (these work orders are often done on ad-hoc bases) and i'm trying to find the simplest/easiest way to handle this

They need to be able a disrete revaluation amount to the work order using decimal dollar amounts)

Any pointers would be appreciated, we're on 9.1

You could consider using master routing for all items in Manufacturing Constants (P3009).

For revaluation , a lot depends upon costing method and Inventory Cost Level that you use. Speed Cost Maintenance (P41051) may be an option for you to change the Cost of the "reclassified" item once completed.

Hope this helps.

Thanks! I will have a look at that. We're using Average cost for all items so cost rollup/freeze is (mercifully) not required

Hi Again!

I have added a "fake" variable labour overhead to the costing. (Cost type C3). I've set the rate to 1 USD per hour and then enter the USD amount as labour hours in routing.
Using superbackflush, both labour and material are charged to the work order without problems.

However, no matter what i do, i cannot get it to work with "negative hours" . In many cases when we do a reclassification, the parent item should have a lower cost than the component item as we expense part of the product at the time of doing the reclassification.

We could get the expense part sorted by performing a manual journal entry after the WO completion/Mfg accounting but the system just does not sem to realise that negative hours = negative dollars = lower actual cost on parent item. I can see negative labour hours and amounts in F3112 but they're still treated as positive/absolute values when the average cost of the parent item is calculated

The worst case scenario is that this is not possible usng the routing cost components and that we have to add X-cost components. as these work orders are ad-hoc, i'm trying to reduce the required setup for each opreration by using master routings and manually entered parts list.

Maybe there is a way to do this after all?
I would like to be enter just one master routing that is used in all these operations and where the user would just enter a variable per-unit cost component that can be either negative or positive.


With kind regards
/Aarto

This is reallly getting frustrating now..
I've given up on finding an easy way to add a negative cost component via routing and BoM as the system doe not want to play ball with negative hours

I thought they could change the parent item unit cost as part of setting up the work order for the item (cost method 02) and removed P31123 from UDC 40/AV so it would not update average cost at time of super backflush. This way, we could directly control the cost of parent item. But... when WO is completed by P31123, the average cost is updated anyway, regardless of 40/AV

Tis is driving me nuts...

Have you tried creating an item number only for costing purposes, valuing it at $1 each, and then adding it to the BOM as either a negative or positive quantity?

Yepp but then realised they need to enter decimal amounts and we do not have decimals in INVQTY