Product Structure Cost Roll Up

[gtmsb]

I have this current cost set: 84.94
and Standard Cost Set: 290.397

I wonder by there is a huge variance here
Attached is the cost set for both

HOW COULD THIS HAPPEN?

There is not much changes for raw material in current cost

 

[wsong]

There could be serveral causes

If you are using last cost or avg cost as your current cost set and your last production order are recieved before the materials are fully issued.

Or You just went live not long ago, you forgot the update the current cost of the initial stock and you are using the avg cost as your current cost set.


Willy Song

 

[gtmsb]

I don't think so.According to my setting in 3.24 And my Current Cost is: Last.
Definitely i am sure of is we didn't run Cost Roll Up fthat requently (only half a year (around june and dec))

I was so curious that why this happen? A huge gap compared to the Standard Cost.
Previously, i had a few sample of this too (the same things happen...but can't really find out the root cause of this)

 

[wsong]

I guess your problem maybe because when you receive your last work order into inventory, material issue has not been recorded fully at that point of time

E.g.
STD usage
FG - A $100
Raw material B $20 1
Raw material C $80 1

You have a prod order of 10PC of A. At the time of goods receipt of A, for some reason ( the issue guy is too busy or he is ill or he only does his input once a day) , you only recorded issue of 10PCS of B, then Current cost of A is updated to $20 only. Even later you recorded issue of C, the current cost of A is still $20.
Current cost
FG A $20
Raw material B $20
Raw material C $80

Cost rollup daily will solve the problem, however it will update the current cost based on BOM rather than on actual usage

Good luck

Willy Song