Hi,
When I complete a manufacturing transaction ( Work Order ) against a BOM that has both input items as well as operational costs for the process steps within the routing , I was expecting that the cost of the manufactured item would include both the input items’ current cost + actual operational costs calculated during execution . I was also expecting that the stock transaction that loads the finished goods item into the warehouse would cost it as such and that would be reflected in the inventory accounting entry .
But I found that the cost of the manufactured item in the inventory accounting entry only included the sum of the input items’ costs and did not include the operational costs. Is the feature of including the operational cost in the value of the manufactured item ? If not , how is the inventory value of the finished goods inventory adjusted for these costs?
Any suggestions / recommendations would be appreciated .