7.6 Costing

COSTING:

a) Input quantity Work in progress closing balance and rate equivalent (if any)

From Inventory config menu choose Calculator qty 154 for each product:

From date – To date: Time to apply

ProductID: Product ID work in progress closing balance

154Qty: Quantity of work in progress closing balance

621Rate, 622Rate, 627Rate: rate equivalent for each group expense 621,622,627

154EndAmt: Amount of Work in progress will be automatic update after costing finish.

621EndAmt, 622EndAmt, 627EndAmt: Amount of each group expense 621,622,627 also automatic update after costing finish.

b) Costing

Step 1: Calculate quantity finishgood input and work in progress

ProductID: Finish good ID

FGQty: Quantity of Finish Goods

154Qty: Quantity of work in progress closing balance (input before costing)

621Qty, 622Qty, 627Qty (quantity working in progress) = 154Qty multiplication with 621Rate, 622Rate, 627Rate

FromDate – Todate: Time apply

GroupID

PhaseID

Step 2: Calcolate total quantity finishgoods for each Group:

Base on quantity finishgoods from step 1.1, we can calculate total quantity finishgoods in period for each group

GroupID: FinishGoods group

621TotGoodQty, 622TotGoodQty, 627TotGoodQty = FGQty (quantity finishgoods input) + 621Qty, 622Qty, 627Qty (quantity working in progress)

Fromdate – Todate: Time apply

PhaseID

Summary total expense in period by costcenter.

When user input 621,622,627 must choose Costcenter.

Expense will be input from Inventory and general ledger

CostCenterID:

CostMethodID, phaseID, AllocationMethoID: get from config allocation expense when user setup CostCenter.

Note: AllocationMethoID: Method allocation when CostMethodID = 2.

Amt: Total expense amount in period

ProductID: Direct expense for Product when CostMethodID = 1

PhaseID: Choose Phase number for next period

Step 3, 4 using for allocate Costcenter which config follow rate quantity and coefficient : CostMethodID =2, AllocationMethodID = 1. For Costcenter is specific identification (CostMethodID =1) and expense allocate by rawmaterial (AllocationMethodID =1) will be calculate in step 5.

Step 3: Calculate expense allocate for group product in phased:

Expense will be summary from step 2 for config CostMethodID =2 and AllocationMethodID =1. If PhasedID is number total expense will be allocate all for this phased, if PhasedID is all, expense = total expense * rate allocate by phased (Costing Rate Allocate Group)

Expense summary by Coscenter will be allocate for each product group in phased by quantity and rate. Result in column GroupAmt

CostGroupID: Group expense 621, 622, 627

CostCenterID:

GroupID: Product group

IsCosting: expense will be allocate for product group or not. 1 is yes 0 is no.

TotGoodQty: quantity product finish in period by group product from step 1.2

CostGroupID = 621 get data from 621TotGoodQty

CostGroupID = 622 get data from 622TotGoodQty

CostGroupID = 627 get data from 627TotGoodQty.

GroupRate: Costing rate allocation group

GroupQty: TotGoodQty * GroupRate for each CostcenterID

CostCenterAmt: total expense summary by CostcenterID of Phased

CostCenterRate: rate expense for product group: CostCenterRate = (TotGoodQty * GroupRate) / GroupQty

GroupAmt: is total expense allocate for each product group, for each costcenter . GroupAmt = CostCenterAmt * CostCenterRate. Can be use for step 4.

PhaseID: phased for costing

AllocationMethodID: Allocate method get from config. Always is 1

Step 4: Allocate expense for each product:

From total expense for each product group in step 3, we can allocate expense for each product. Result will available in column ProductAmt

CostCenterID

GroupID: Product group

GroupAmt: Total expense for each product group.

ProductID: Product in period

TotGoodQty: total quantity product in period = quantity input (FGQty) + quantity working in progress (621Qty, 622Qty, 627Qty)

ProductRate: rate allocate for each product

IsCosting: allocate for this product or not? Default is 1

TotProductAmt: TotGoodQty * ProductRate for each product group.

Rate: rate allocate expense for each product = (TotGoodQty * ProductRate) / TotProductAmt

ProductAmt: Expense allocate for each product = GroupAmt * Rate

Step 5: Costing Finish Goods:

Total expense for each product including working progress opening balance , expense in period. Exepense in period including: Expense indentification , Expense allocate by raw material , Product Amount from Step 4.

Costing product = Total expense / Total quantity in period.

ProductID

Qty: Quantity finish goods from step 1.1

BeginAmt: Working progress opening balance get from last period.

Amt621_ide, Amt622_ide, Amt627_ide: Expense identification in period by group 621,622,627. Get from step 2 for Costcenter have CostMethodID =1

Amt621, Amt622, Amt627: Expense in period get from step 4 for each group 621,622,627 and Expense allocate by raw material.

TotAmt: = BeginAmt (Summary expense working progress opening balance) + Amt621_ide + Amt622_ide + Amt627_ide + Amt621 + Amt622 + Amt627

UnitPrice: Costing of product = TotAmt / Qty

EndAmt: Working progress closing balance = UnitPrice * working progress quantity

After click Save:

Costing after caculate in Unitprice column will be update into all Finish Goods receipt entry.

Working progress closing balance will be update into working progress table.

Step 6: Calculate price out by average method for cost of goods sold or price out on next phased.

ProductID:

ItemName: Product name

BegbalanceQty: quantity opening balance

BegBalanceAmt: Amount opening balance

InputQty: Quantity input in period

InputAmt: Amount input in period

PriceOut:

Need update expense in step 2 before calculate costing for next phased.