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Additional Cost Update Functionality after Production Tracking in Sage X3

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ADDITIONAL cost update functionality after production tracking
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In this blog, we are going to take a look at using the ADDITIONAL cost update functionality in Sage X3. What the cost update function does allows you to update costs for stock issues.

For example:

You create workorder for a product and it has cost to it and let’s say one of the components you used comes in with an standard cost is 100 INR so let’s say your ADDITIONAL invoice for 100 INR you receive it you consume it in a workorder you complete you product you cost the work order everything’s said done have a cost on that finished good that has now consumed so let’s say it’s one component and that goes into the work order so if its 100 INR you make one the cost is 100 INR there is no labor, machine cost  is 1000 INR and over head cost is 100 INR then your ADDITIONAL invoice for that component that you received in that 100 INR comes in at 200 INR the cost update function allows you to after the fact update the cost of the raw material and the finish good.

So I will show you the set up and how that works below.

Cost Update Functionality after Production Tracking in Sage X3

Take a look at the products  first of all so I have a couple of test  products set up test parent and test  child you know create a created a BOM for the parent that uses just quantity  one on the child so we’ll go in and take  a look here’s my test parent now I  created the product records but the  setup we need to look at in the product  site information so the costing method  for this to be valid to use has to be  average cost average lot costs FIFO  anything but standard or revised  standard okay  it’s got to use an actual costing basis  or roasters if you’re using standard  costs there’s no point in updating the  actuals because you’re using standards  so average costs typically what  you would use  and other than that that’s all you need  to do on that setup then within the  costing method there’s also another  critical setting you have to turn on and  that’s a just issues cost this allows  this costing method to  be eligible to  run the cost update function

Created Raw material RM00199

Create Raw Material in Sage X3

Jumped into that product site of that product and checked for cost valuation

Cost Valuation

Then jump into the cost valuation and set up adjust cost to Yes.

Adjust Cost

For that raw material updated standard cost

Standard Cost

Created FG-LIQ-00284

Created Product

Jumped into that product site of that product and checked for cost valuation.

Product Cost in Sage X3

Created purchase order with raw material RM00199 as mentioned gross price rupee 100

Purchase order number: GGOC/PO/202300582

Purchase Order Number

Created purchase receipt with respect to purchase order

Created Purchase Receipt

Updated standard cost of RM00199

Updated Cost

Created production BOM for FG-LIQ-00284 with respect to the component R00199 and created routing with WorkCentre

Created Production

Created work order ,production tracking and work order closed  after creating production BOM

Create Work Order

WO Status

Before creating ADDITIONAL the material cost as 100 rupees and total cost 1200 rupees, After creating ADDITIONAL did cost adjustments after that the material is updated as 200 rupees and total cost as 1300 rupees


Cost Adjustment

Production Cost

After that Tried to post WIP posting in costing getting error like unbalance journal legal

Log Reading

If we get any error like above screenshot then we need to go for automatic journals and select WIP then click on lines.

Automatic Journals

Click on 35 line then change the formula (([F:MWI]CSTELM(9))+ar2([F:MWI]CSTELM(10))) in amount tab  and change the sign 1 to -1 then save.

Formulas In Sage X3

Once try to post the WIP then WIP impacts will be generated.

WIP Generated

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