Costing
On the Costing tab, you specify the accounting method that you use for the blend facility. The JD Edwards EnterpriseOne Blend Management system supports both standard cost and operational (or actual) cost accounting.
When you use standard cost accounting, the system creates journal entries based on the standard cost of the end-use reservation (EUR). All EURs must be associated with an enterprise resource planning (ERP) item, which serves as the basis of the cost of the EUR. You attach the EUR to a blend lot. As the lot moves through the blend process, you attach costs to the lot. Variances occur in standard costing when the EUR of a blend lot changes. These variances are not a result of a difference between the actual cost of the lot and its standard cost.
Operational accounting tracks costs at the cost component level. Operational costing does not create variances because the system records transactions at the actual cost. The JD Edwards EnterpriseOne Blend Management system uses costs that you set in the inventory costing method for the item as it relates to the EUR.
Regardless of the accounting method, the system bases costs for blend lots using operational costing. However, the general ledger (G/L) cost method that you select for the blend facility is the basis for creating journal entries.
Consider these facts when working with costs:
Before lot costs change only when you record survey gain/loss.
Time-based vessel costs accrue from the close of the previous operation to the end of the current operation (or the start date if the end date is blank).
Cost calculations will not occur on the operation duration if the start and end dates (planned/actual) are insufficient to determine the operation duration.
In-place operation costs apply to the after lot.
Time-based From vessel costs apply proportionately by volume to the move quantity and the From After quantity.
Time-based To vessel costs apply entirely to the To After lot.
Operation costs apply proportionately by volume to the move quantity.
The system calculates cost in this sequence:
Survey gains/losses of EURs on the before lots resulting from dips/measures (if actual dips/measures have been entered).
Move quantities for movement detail lines.
Operational gains/losses of EURs on the moved before lot.
EUR reclassification if EURs change for standard costing, which is the net difference between the blended EURs and the instructed EURs.