Costing for shearing orders without BOM
The client is into sheet metal stamping. The input materials for pressing are steel sheets in different sizes. Each FG can be produced from only one specific sized sheet.
These sheets are ideally to be procured directly in the required cut sizes. But in case of unavailability of the sheets in the required size, and due to high requirements, these sheets are obtained by carrying out shearing activity. In this, the required cut sizes are obtained by shearing other larger size sheets. Also, some other off-cuts might be produced while carrying out the shearing.
This being the regular scene here, we have defined the sheets as HALB.
But the possibilities of making a particular sheet from the other available sheets are vast. Again from a single sheet many other sheets (as co-products) are possible to be manufactured along with scrap(as bi-product). This makes it impossible to make any BOMs for the particular sheet.
The problem for this scenario is in costing. We can create a order showing the material to be produced, the co-products and the bi-products (All entered manually in order) but we are not sure how the costing will happen.
The material being HALB is given the price control S, and being BOMs are not maintained, the prices are not updated through costing run.
We have tried with both the price controls S and V. In both cases the costs of the materials are not updated through production orders.
Can you suggest some answer as to how the costing of the sheets would happen?