Product costing in this scenario?

[Former Member]

Process Order created for Finished Goods A, With components 1 & 2. We can also use components 1& 3, 1&4(obviously, we will have different production versions for all 3)

At the time of using the actual product on the floor(we have created and released a Process Order using the version for component 1&2),

->we find that component 2 is only partially available and we go ahead and use component 3 for the remaining

So the challenge is that the Backflush will occur for the BOM with the 1&2, while we supply 1,2 &3. Even if we issue product to the Process order, how will costing work, because costing will be based on the Production  version in the Process order?

[Former Member]

Hello Saugata,

as per my understanding.

Case 1:

if you have the situation like based on the available quantity you want assign, we can go with alternative group in BOM.

Case 2:

if you want consume as per the your production version.

like component 2 as available and component 3 as per your requirement.

in this Stranded cost will take place for planned consumption and variable cost will captures for the planned & unplanned consumption against the order at the time of order settlement.

Best regards

Venky