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Cost Calculation when there is change in BOM of FERT Material

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Hello Experts,

 

We have a scenario where we manufacture a FERT material-F with existing BOM with respect to Project.

 

Now, we have a new requirement to remove one or some of the components of BOM and returned these removed components to manufacturing plant to be available as unrestricted stock.

 

For ex:- FERT Material- F is made of components ROH(R), HALB(H) and Phantom(P). A new project has started where material is similar to the above FERT-F with small changes.

 

Changes in new Project are –
1) One   component say ROH-R is not required.
a) In my opinion if removal of R is known before production, then an alternative BOM can be prepared without R, then how cost of the material F will be determined without R?.
   Generally Material master have standard price, how it will differentiate between alternative BOMs of same material-F.

 

b) If we do not know removal of R before production – Material-F is produced with complete components as above and then R is removed and returned to manufacturing plant or retained in transit plant for future use. How quantity and cost of component can be transferred from specific Project (WBS) to unrestricted stock in transit plant or moved to manufacturing plant. How this will be recorded (cost posting) in system.?.

 

Please provide your valuable inputs to my above queries.

 

Thanks for your support.


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