COSTING FOR THE WATER:

Hai gurus,
Currently I am planning to put my BOM for the whisky as two part one is blended whisky and another Is packing material. (For discussion sake, actually it is one BOM only)
The packing material consists of Bottles, caps, labels, carton boxes.
The blended whisky consists of Rectified spirit/water/color/Ageing whisky and Flavor.
Now I planned to Put the Blended whisky BOM only with Rectified spirit and water only as the Composition of Color /Ageing whisky/Flavor is very less and also it is maintained as trade secret.
So BOM for 700ML Blended whisky will be approximately 350ML Rectified spirit/300ML of water and remaining 50ML consist of Color/Ageing whisky and Flavor.
So we are avoiding this 50 ML and creating BOM for 700ML blended whisky as 350ML Rectified spirit and 350ML water. The cost of 50ML of color /Ageing whisky and Flavor is added in the OH cost.
So now my problem is how to add the cost of water as the water is got from their own well and it is Treated and added with Rectified spirit. They have the costing for conversion from ordinary Water to treated water, if that is the case how to add water in the BOM without creating any requirement as an item and costing for the same.
waiting for the positive reply.
regards,
sekar chand

Dear Sekar,
Check whether this can help you.
1.Issue to Cost center using 201 movement,on monthly basis by creating one specific cost center for this posting.
2.If you want this to be reflected under product cost,you may have to add water as a component and also it's quantity and
check.
3.Assigning a overhead group and capturing as overhead cost.
Regards
Mangalraj.S

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