How to process actual costs

Processing actual costs must be executed to fully and accurately record the cost price of an order in MKG. Processing the actual costs affects the value that is tied up in work in progress. To process the actual costs, the material requirements that have been manually fulfilled from inventory must be definitively processed to create a financial inventory entry.

Step 1: Check the outstanding requirements

First, check the Production List for outstanding requirement lines. Fulfill or cancel the requirement where possible or necessary. Then check the Purchase List for outstanding requirement lines for materials and outsourcing. Fulfill or cancel the requirement where possible or necessary. Finally, check the Inventory List for outstanding requirement lines. Fulfill or cancel the requirement where possible or necessary.

Step 2: Check backflushed material lines

Check whether a value has been entered on material description lines of production orders that have been backflushed (anonymously withdrawn from inventory). This action is performed in the Production Orders Action List.

Step 3: Process all hours

First, in the View Hours Action List on the 'Initial' tab, perform the Process Provisionally action for all hours and resolve any issues. Then, in the same Action List, perform the Process Definitively action, which processes the definitve hours in the actual costs.

Step 4: Complete production orders

Complete production orders that are ready in terms of quantity but cannot yet be financially reported ready, where possible. Do this based on the process notifications in MKG. The Complete action is performed in the Production Orders Action List.