Hi all

I use MAUC, and i test a production receipt twice.
the first is show correct value (eg 100 USD for 100 pcs)
the second which i run material and hour cost for 125 USD, after i run report order complete , is still show also 100 USD.
It should be 125 USD.
Am i correct?
Or MAUC also work for receipt amount?

Hi all

I use MAUC, and i test a production receipt twice.
the first is show correct value (eg 100 USD for 100 pcs)
the second which i run material and hour cost for 125 USD, after i run report order complete , is still show also 100 USD.
It should be 125 USD.
Am i correct?
Or MAUC also work for receipt amount?

Dear Quelle,

Plz check the Ur Valuation Method for ur Fg warehouse, Is this FTP, because ur reciept amount is 100 USD again.
If u use the MAUC then system should pick the reciept amount to 125 USD instead of 100 USD.:)

its using MAUC.
thats the proble, this production receipt is really confusing me it has been 2 years and i still can not proove it to the support, how this happen :((

The functionality of the the receipt value of a production order is easily misunderstood - and in my eyes also a shortcoming of the software.

Ok, I'll try to explain how it works:

There is a production parameter indicating if a production order may be received in Warehousing at "actual costs". If this is set to "yes", there is another flag available in each production order, indicating if this particular production order should be received at "actual costs".

If that flag is "yes" on a production order (and the item is valued against MAUC) the following happens:

The item is received at the warehouse at the cost allocated on the production order at the time of the receipt, and this is the amount that changes the MAUC. In other words, if you have no costs on the order so far (no material booked, no hours recorded), and nothing on stock, the MAUC after receiving will be zero(!).

If you close the production order afterwards (or run "close production orders" with the "do-not-close-just-post-results" flag on) and process inventory variances afterwards, and if the item is still on stock, the other costs that have been allocated on the order in the time between receiving and closing, will be booked on the stock and will correct the MAUC. In other words: If the item is issued from inventory already at that time, the MAUC will not be corrected, the amount goes to profit and loss (or general project WIP for customized items in projects valued agains actual costs) instead.


If the flag in the production order is off (which seems to be your setup), the following happens:

The item is received at the warehouse at standard costs (Standard cost price for standard items, estimated cost price for customized items), and this is the amount that changes the MAUC. In other words, if you have no costs on the order so far (no material booked, no hours recorded), and nothing on stock, the MAUC after receiving will be at least the standard cost price - and that's better than nothing, right?

If you close the production order and process inventory variances, the difference between standard costs and actual costs will be be posted to stock, if the item is still there. If not, that variance goes to P&L or project specific WIP exactly as above.

To wrap that up: The MAUC will only mimic actual costsas long as the item is still on stock when you close the production order and after you closed the order. In the time between reporting complete an order and closing it, the MAUC will be either costs to date of the production order or standard cost. Any deviations from reveipt value and actual costs that are booked to a production order after the produced item is issued from stock go to profit and loss or general project WIP always.

For customized items, that boils down to the fact that valuation against MAUC in LN is something different than valuation against "actual costs" as in Baan IV. That old functionality does not exist any longer.

Taking these concepts into account, the following rules apply:

If you report any material or hours after reporting a production order complete, and if it's likely that you will issue the produced items before closing the order, use the standard cost price as the price that goes to stock. Make sure that this standard cost price is as good as possible, it might be all that you get into the higher levels of your cost structure.

Only use the "actual costs as production receipt value" functionality, if you're sure you have your items on stock for a longer time. Even then, make sure that you backflush any material/hours before you do the receipt. Run "close production orders" without closing (just calculating the results) frequently.

Hope that helps to clarify the things a bit
Uli