Sales OH and Corporate OH computation in order WIP Valuation
While reviewing production order bookings it is observed that at the time of
running monthly "overhead run", system is calculating corporate overhead
and sales overhead and debiting production order. Since at standard cost
run, corporate OH and Sales OH is not being considered in inventory
valuation, hence production order is credited with cost of goods
Now if the order is in open status, WIP valuation is happening like "Debit
in production order (incl corporate OH and Sales OH) minus Credit in the
production order (w/o corporate & sales OH).
Can you please suggest some way to follow for correct WIP valuation.