Product Costing of Sub Contract Material issue

[former_member214904]

Dear Exparts

We have configure the sub contract process. But we are facing one issue regarding the costing issue of Sub contract material.

Sub contract material is a Finished goods. So that price indicator will be S as per our understanding.

But this material has no BOM because this material is not produce in our plant.

We also add the sub contract charge (expenses GL) in the cost component structure.

Basic information of Sub Contract

Configuration of Sub Contract Process

Now what will be correct price indicator of Sub contract Material and how we will solve the below issue.

Sub contract charge (BDT 600) should be add with the Raw Material Cost (BDT 10).

Regards

Tarek

[former_member198650 · Accepted solution]

Hi Tarek,

In this case your FG should have the price control indicator 'V'-MVP. Then only your raw material cost and subcontract charge will reflect to your FG.

Regards,

Mukthar

[former_member214904 · Accepted solution]

Hi Mukthar

Thanks for your reply.

As per advice we have gone through test. And result is ok.

Regards

Tarek