Is it possible to allocate costs among formula item, co-product and by-product per cost category?

Dear Experts,

As far as I tested, AX provides us settings to allocate total cost to each product in a formula.

But I wonder whether it has further settings to allocate only some specific costs to those co-products and by-products. Even for each cost, the allocation method and rate may be different.


Thanh you very much for all of your suggestion.

  • You have the costing sheet for indirects, you have the cost categories on the routing and you have the cost allocation on the formula, but that is all, I am not sure what else you are trying to achieve by cost category - do you have an example?
  • In reply to AdamRoue:

    Hi AdamRoue. Let's say I have a manufacturing process with 3 steps. To produce product A, I only need step 1 and 3. But I add step 2 to achieve product B from this process. So I want: the direct labor cost in step 2 go 100% for product B, all other costs from step 1-2 will be allocated at a defined rate (i.e: 70-30), and all costs in step 3 will go 100% for product A. Is is possible?
  • In reply to Thai FC:

    No I do not believe that is possible, but clearly the production of B in this instance is part of A, it is a By/Co or if it is independent it would be a separate order. In your example B is a product of making A, so the cost is A but the cost for B depends upon the configuration then of the cost allocation in the formula.
  • In reply to AdamRoue:

    Thank you!
    A and B shares the same materials and costs in step 1, so I could not separate order. But from step 2, they are independent in direct costs, so I could hardly use the cost allocation in the formula (it blurs all clear costs). My business process is not exceptional yet I tend to think AX could not provide a direct, systematic way to solve it. Maybe I have to manually allocate costs after the production finishes.
  • In reply to Thai FC:

    There is no direct labout cost of step 2 for product B, you are not making B, B is a consequence of making A. If you wanted B to be wholly direct labour it is an entity in its own right.

    Anyway in my opinion there is no way in AX to allocate the direct costs of a routing step to a "By product".