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Standard costing-reg

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This query is : Resolved

amarnath (Querist)

19 October 2013 Hi,

We are maintaining standard price system for WIP and FG.We have 1 to 7 operations to finish the final product but we are not maintaining operation wise costing.Here my question is when one product reject at 1st or 2nd operation we are booking rejection cost based on the finished standard price.but actual rejection cost is low because only 2 operations done.so how to book(expenditure)rejection cost when we maintain standard costing system?
Note:we are using SAP

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

20 October 2013 Since the products passing through 7 process, need to maintain the process costing system and work in progress need to be valued accordingly the stage of process not on the cost of finished goods. so maintain the costing based on the process and value the actual WIP or rejected product value accordingly the stage od rejection

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