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I'm looking for a solution to add Setup Costs to a Manufacturing Order. The case is we have a machine, which has to be setup at the moment we are going to produce a different size end product. 

This Setup is done by a third-party company, and is invoiced on a an hourly-rate. Setup time is between 3 and 5 hours, and the costs for this service has to be distributed over the produced items. So the setup costs have to weight heavier on a small batch, as on a large production. 

Costs are charged after setting up (as the setup time is kind of variable), but before finishing the end product.   

As Service is provided by a 3-rd party, I want to purchase the costs, at receival I would like to alter the purchase to the actual hours.

At the end I want to see these service charges in the valuation of the produced items. 


Could somebody advice how I can achieve this? 


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Thanks, this seems to work. The only thing I'm missing is the fact I don't see the costs in the MO Overview. I think the costs are showing up in the Unit Price of the final product, but I would like to see them in the MO Overview aswell. Might this be possible, or is there another solution to make this visible?



Best Answer

Hi Ronald

I think you can use a service type item to be added separately with vendor bill using landed cost.

Landed cost on manufacturing orders will be able to add valuation of those services to the produced items in all Manufacturing Orders.

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