Hi All,
We are in the process of deciding to implement Production order or Product cost collector as a cost object
Business scenario:
The client is in large scale production of consumer goods (Face & toilet tissue papers). It’s a make to stock (MTS) process. There is one plant.
The production have to two processes:
Manufacturing of “parent roll “(Main process) where paper pulp (RM) is converted into huge parent roll
Conversion process (Sub process) where the parent rolls (semi-finished product) are rewind into small rolls, cut in pieces and packaged into end product.
The parent roll process and converting process will have separate product order.
Parent rolls can be sold directly.
We are stuck in deciding if we should go for Production order (A) or Product cost collector (B) as a cost object.
Also if there is a possibility to have Production order as cost object for parent roll process and product cost collector for Conversion process (C).
Needed help in understanding the pros and cons A, B, & C options
Thanks,
Aju