Hi All,
While preparing Bill of Material should we give provisions to standard rejections as well?
Thaks in advance.
3 Replies
CMA Shilpa Shinde
(COST ACCOUNTANT)
(217 Points)
Replied 12 July 2013
Support your query with example so that reply can be made accordingly.
Tharun
(sd)
(95 Points)
Replied 12 July 2013
Lets say I wish to compute BOM quantity to produce 1 KG of Cloth. Here I need to know how much Yarn I need to produce 1 KG of cloth. Now, I will consider the process loss that will occur during processing and decide that I will have 200 gms of wastage. Now My BOM quantity should be 1.2 KG. Here I got suggestions from others to add my rejections like 2% of raw material required. Is it correct?
CMA Shilpa Shinde
(COST ACCOUNTANT)
(217 Points)
Replied 15 July 2013
Yes it is Correct. So that Based on BOM Masters Other Report Like Input to Output and % Wastage REport can also be generated.
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