With a multilevel work order, a bill of material position has an associated assembly.
The assembly is normally produced and entered and the associated bill of material position is issued.
To avoid valuation problems, these entries are not valued.
Example:
Assembly A
Bill of material Pos 10 Assembly B
Bill of material Pos 20 Material C
Assembly B for bill of material Pos 10
Bill of materials 10 Material D
All entries on "Assembly B" or "Bill of materials Pos 10 Assembly B" are not valued here since they offset each other as long as the valuation reference is the same. On the other hand, entries on "Bill of materials Pos 10 Material C" are valued.
Only actual costs actually occurring are totaled.
Special case Stock withdrawal:
If assembly B is posts only 5 receipts and the "Bill of material Pos 10 Assembly B" posts 8 issues, then it must be assumed that 3 pieces were removed from stock since they were not generated through this work order. In this case, these 3 pieces are valued as regular material.
Example:
Assembly A
Bill of material Pos 10 Assembly B
Issue 8 pieces @ €500 Valued at 3 * €500 = €1500
Assembly B for bill of material Pos 10
Receipt 5 pieces @ €500
Special case "Valuation of assembly postings"
The valuation of assembly entries can be activated through options / calculation.
All entries are valued in this case. If the valuation default for receipt and issue is the same, then the entries neutralize each other.
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