the source of collection of manufacturing overhead).
* Adopt the monthly weighted average cost system.
* The low level codes of basic data of item numbers must be correct.
4.Bill Of Material Management System
(1).Set-Up Product Routing Data:
If you only need to calculate the actual cost of the product rather than
compare the actual cost with the standard cost, the data relating to standard
routing/manufacturing process of the product may be omitted.
(2).Create Data for Material Consumption:
Items created in BOM must be classified as direct materials, indirect
materials, factory supplied materials or customer supplied materials. The
direct materials and factory supplied materials are included in the material
cost of the product, the indirect materials are included in the manufacturing
overhead and the customer supplied materials are not handled.
(3).Update of low level code calculation:
The BOM must be correct; in case of any transaction related to the BOM, it
is necessary to update the low level code.
5.Purchase Management System
(1).The purchase list/return list is the source of purchase cost of the
material(s).
(2).The document must be current and the purchase cost must be correct.
6.Manufacture Order/Sub-contract Management
Before this system is put into use, it is necessary to use the "manufacturing
order/outsourcing management system" first. Since the cost is calculated by
summarizing the manufacturing order costs to obtain the product cost, such
data as requisition, production transfer-in and outsourcing of the
manufacturing order are supplied by the "manufacturing order/outsourcing
management system" and are necessary conditions for calculation of the
manufacturing order cost.
(1).Check the manufacturing order for the transaction documents (check of
documents such as the requisition form, return form and transfer-in form
shall be Y or W). Since the cost is calculated by summarizing the
manufacturing order cost to obtain the cost of the product, if "check
manufacturing order" is not set for the document, the document cannot be
incorporated into the manufacturing order cost.