Items and their costs do exist by site. Roll up is also done by site. A manufactured part in one site can be a purchase part at the next. Another thing is that the cost roll up STOPS to "roll up" if it "meets" a purchase item (P/M code = P). My expectation is that within this price item costing and roll up mechanism, there are some wrong expectations.

Proposal: 1. execute a manual cost roll up by site.

2. analyse the various cost layers and see which price elements are updated.

I am sure you will find the difference!

good luck and keep us posted.

Thanks for your response. Raymund. The problem is that when we do the cost roll up of product II, QAD seems to create a cost set for product I in site B that only includes materials, while the same cost set in site A includes both materials and work centre rates.

 

 

After rolling cost at site A you then need to use 30.3 to copy the costs to site B (Distribution).  Make sure you set the flag to NOT sum the cost into material.

That did work! Thank you very much Phill. Much appreciated!

Your welcome!

 

Hi Phill,

I'm introuble again!  Intially your suggestion seemed to have worked but I'm now experiencing a similar issue to what I had at the beginning:

ITEM (I)  is manufactured at site (A) 
ITEM (II) is manufactured at site (A), but one operation happens at site (B)
          the operation that happens at site (B) consumes item (I)

PROCEDURE:
Create item (I) in site (A)
Perform routing and product structure roll ups
Copy cost sets of item (I) from site (A) to site (B)
     Cost sets of item (I) in sites (A) and (B) are now identical

Create item (II)
Perform routing and product structure roll ups
** ISSUE *** Cost set of item (I) in site (B) has now a lesser value in the cost element 'Material LL'

I determined that item's (I) cost set change in site (B) was caused by the product structure roll up routine. 

I believe this is happening because the operation that consumes item (I) takes place at site (B), but I can't
figure out why? Maybe this is driven by some QAD setting? 

Any suggestions/ideas would be greatly appreciated.

Remember: Costs exist per item, per site, that is why the issue becomes so confusing. Are you buying items from site B or are you buying labor from site B. It looks like you want "subcontracting" (adding labor costs) in site B and trying to somehow reflect this in item costs (labor or material costs?) in site A. I believe you can technically solve this but conceptually you will get problems in the end. You will not be able to explain this to your next generation of end user. I would advise to review your conceptual logistical and cost model. Sorry for not directly helping but I think that in the end, a technical solution will create more questions /problems then there are solutions. Starting with the accountant!

As you experienced yourself, the technical solution is quite difficult to understand. Let alone explain to an accountant.

What you might want to try is before you do the full cost roll at B you need to "FREEZE" the cost of Item 1.  What you could do is transfer all your costs as you do from A to B then run 13.12.1 for "D" items at the site B so that when you run the cost roll their costs are not changed

Hi Raymond,

Thanks for your response. Product (I) is a paper made at site (A). Product (II) has two operations (1 item, 1 subassembly). the paper is slit at site (B) and then made into a bag in site (A). 

Item (II) is sold and belongs to site (A). The slitting operation at site (B) is external.

 

Hi Phill,

Freezing item (I) before the roll ups of (II) did the trick! All good.

Thanks again for your help!!!