we have some outside processing, but we have different set-up. Maybe that
is an option. Our way of treating them is having a fixed amount for the
process per unit in a cost bucket "outside processing". This bucket is not
automatically updated by PO amounts so a constant amount is added to the
total costs when the process is completed/the next level part is

Good luck,

                      "Chick Doe"
                      <Cdoe@barton-instr         To:      <bpcs-l@midrange.com>
                      uments.com>                cc:
                      Sent by:                   Subject: outside operations 

                      09/18/2002 07:09
                      Please respond to

here's the situation:

bpcs version 6.1.2

we cut a work order to produce some parts. one of the operations is a heat
treat operation that must be done outside. the heat treat vendor charges
us, not for the number of parts that he treats, but for the each heat treat
cycle that he performs. thus is we send 1 part out he charges $200 (example
cost). if we send 100 parts out he charges ($200).

1. how do we set the outside processing cost in the routing operation
record (my guess is to determine the average number of parts processed at a
time and divide this into the lot charge to determine an average cost per
2. how do we write the OP Purchase order. we have been trying to figure out
the actual cost per part for each batch by taking the lot charge and
dividing it by the number of pieces being sent outside. but because the
number of parts changes from batch to batch., this results in numerous PO's
for the same process, each with a different PO price. (this takes some
persistence to explain to the accounting folks.) it would be nice if we
could write the PO stating one lot for a total charge of $200, but how
would this interact with the work order qty completed?
3. how should we record the variance between the 'standard cost' of the op
operation in the routing record, and he actual charges from the vendor?

thanks in advance, just another day in the interesting world of cost

chick doe
barton instrument systems

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