Bill:

I am assuming that the Routers for both A1 and A2 are correctly defined as
Outside Operations and the Expected Standard Cost for the Item is entered on
the Routing.

I would check the P.O. Detail Line for Item A1. For Outside Operation
P.O.'s, you must enter on the P.O. Line the S.O. Number and Operation Number
to which it applies. Then, when the A/P Invoice in entered and matched to
the P.O. Line, the just the Outside Operation Cost from the Routing
Operation will be used for the PPV calculation.

However, if Item A1's P.O. does not have the S.O. and Operation Number
entered, then BPCS is assuming that you are purchasing Item A1. That is,
you are buying the complete Item A1, not just the Outside Operation.
Therefore, when the A/P Invoice is entered and matched to the P.O., the PPV
will be calculated against the Total Standard Cost for Item A1.

Please let me know if you have any questions. Feel free to contact me
offline.

Thanks.

Les Mittman
847-858-5235

P.S. I am a consultant with over 20 years for experience with BPCS. Pleas
feel free to contact me for support issues.


-----Original Message-----
From: bpcs-l-bounces+lmittman=sbcglobal.net@xxxxxxxxxxxx
[mailto:bpcs-l-bounces+lmittman=sbcglobal.net@xxxxxxxxxxxx] On Behalf Of
Bill
Sent: Friday, October 02, 2009 1:17 PM
To: bpcs-l@xxxxxxxxxxxx
Subject: [BPCS-L] PPV Calculation Against Total Cost Instead of OP

405CD environment.

We have 2 part numbers, one of which happens to be the child of the
other. We'll call them A1, the finished good; and A2 the WIP.

When we process the invoice for the outside processing for A1, the PPV
is calculated against its total cost instead of the OP step.

When we process the invoice for the outside processing for A2, the PPV
is calculated correctly. Note: different vendors if it makes a difference.

I have compared the router data for each item and can find nothing there
that might explain the difference. Does anyone know what might be the
cause?

Bill

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