Costing in case of Seasonal production

[former_member588855]

Dear All,

My client has a product which has got seasonal production i.e. say 6 months.

Now we have implemented costing sheet and assigning overhead as % of RM issued on the production order. Now the depreciation cost and other repairs and maintenance cost incurred during the period the product is not manufactured is remaining unabsorbed on cost center.

How to address this situation as the cost of the product is getting reduced. Kindly provide help.

Regards,

Divraj.

[ajaycwa1981]

Hi Divraj

There is no solution to this.. if there is no production, the cost will remain unabsorbed in that month

You should ideally have COPA so that you can allocate all such costs to COPA as Unsorbed overheads after all the period end activities are completed.. But ref to your other post, you dont have COPA in your company

As far as dep is concerned, configure your Dep posting rule in OAYR such that you post major portion of dep in seasonal periods when you have production... Or use MANU dep key and post dep when you want... But as far as other expenses are concerned, you cant avoid booking them

br, Ajay M