Kathy Barthelt / Tuesday, February 27, 2024 / Categories: Infor LN & Baan Tips Infor LN & Baan Tip: Navigating the Complexities of Surcharges on Phantom Items in Manufacturing Is it ok to define surcharges on phantom items? It is advised not to use surcharges on phantom items for the following reasons: The usage of phantom surcharges makes it, in general, more difficult to understand, verify, and explain the result of the cost price calculation. Real phantom items do not exist in real life. It is only an efficient way to specify the BOM. It is therefore questionable if surcharges should be defined for these non-existing phantom items. The usage of phantom surcharges can lead to variances in production orders, depending on the actual usage of the phantom. When surcharges based on added costs are defined for both the main item and the phantom item, then the surcharge will be applied twice. Alternatives are: Define the required surcharges on the main item of the phantom. Define the required surcharges on the sub-item of the phantom. Define a (backflush) operation on the phantom to cover the handling costs (if any) of a phantom item. Previous Article Infor LX & BPCS Tip: Mastering the Latest Infor LX Innovations for Manufacturing Excellence Next Article Streamline Your Audit Process: How Crossroads RMC and Avalara Ensure Compliance and Confidence Print 30465 Rate this article: 5.0 Kathy BartheltKathy Barthelt Other posts by Kathy Barthelt Contact author Facebook page Twitter Linked In YouTube Website
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