I have 2 items lot controled
Item A purchased
Item B produced

Item A is part of the BOM of B, my question is...

When I make an issue to Production Order, what cost is taken??

The FTP of the item A or the Lot Price of the item according to the lot I have selected???

Regards

JP

Transactions take place at standard cost (FTP) only. The only difference is the point at which the difference are calculated and financial transaction it uses.

Here is the comparative anaysis of FTP & Lot price

1. FTP price stock inventory is valued at standard FTP cost. Lot controlled Lot priced stock is values at Lot price (Only for purchased item)
2. Financial transaction for purchase price variance is generated at the time of purchase or change in purchase price in case of FTP. For lot priced items it's at the time of stock issue/ consumption / change of purchase price.
3. Fin Trx for purchase price variance is Result for FTP item and is Lot result for Lot priced items.

So coming to your question .If u issue A to production order for B , then the Production issue will be at standard FTP , Production / Lot result for difference between Lot price and standard price is generated , Balance inventory of A is at Lot price and finally production / Receipt is always at Standard FTP cost for end item B.