Hi all!
I've got a question regarding costing co-products and by-products (using standard costs):
According to the manuals (8.6), to calculate the cost I have to:
Allocate the costs to co-products (done when creating the structure).
Freeze the co-product's costs.
Enter by-product costs.
Freeze by-product costs.
Perform a structure roll-up.
If I read it right, I have to manually calculate the cost of the base process (labor, burden & subcontract) manually and then use this cost (minus whatever by-product costs I can identify) to allocate costs to each co-product.
When I run the structure cost roll-up it will calculate material and this level labor and burden costs and roll up my lower-level costs.
IOW, I'll always end up doing the "routing part" of the roll up by hand?
Now, there's something else that confuses me: if I freeze the costs of the co-products and the by-products, how will I be able to do a structure roll up that will affect them? If their cost is not affected that means that the structure roll-up phase will not be complete hence my costs are going to be incomplete.
Can somebody please shed some light on how costing of co-products/by-products takes place?
TIA,
Carlos
=======================================================
Carlos Colmenares http://www.protech.com
Senior Programmer ccolmenares@protech.com
Protech Systems Inc. (609) 714 0700 - Ext. 50
PEG Member 1999061404
I'm the only one to praise/blame for whatever I do/write/say
=======================================================
"Quick to judge, quick to anger - slow to understand
Ignorance & prejudice & fear walk hand in hand"
RUSH - Witch Hunt.
I've got a question regarding costing co-products and by-products (using standard costs):
According to the manuals (8.6), to calculate the cost I have to:
Allocate the costs to co-products (done when creating the structure).
Freeze the co-product's costs.
Enter by-product costs.
Freeze by-product costs.
Perform a structure roll-up.
If I read it right, I have to manually calculate the cost of the base process (labor, burden & subcontract) manually and then use this cost (minus whatever by-product costs I can identify) to allocate costs to each co-product.
When I run the structure cost roll-up it will calculate material and this level labor and burden costs and roll up my lower-level costs.
IOW, I'll always end up doing the "routing part" of the roll up by hand?
Now, there's something else that confuses me: if I freeze the costs of the co-products and the by-products, how will I be able to do a structure roll up that will affect them? If their cost is not affected that means that the structure roll-up phase will not be complete hence my costs are going to be incomplete.
Can somebody please shed some light on how costing of co-products/by-products takes place?
TIA,
Carlos
=======================================================
Carlos Colmenares http://www.protech.com
Senior Programmer ccolmenares@protech.com
Protech Systems Inc. (609) 714 0700 - Ext. 50
PEG Member 1999061404
I'm the only one to praise/blame for whatever I do/write/say
=======================================================
"Quick to judge, quick to anger - slow to understand
Ignorance & prejudice & fear walk hand in hand"
RUSH - Witch Hunt.