If we are making more then one finished inventory item from a single raw material then we would use separate Production Orders for each finished inventory items.
Lets say you we are doing A Raw material Value is 100 it gives B & C finished goods,if we make separate production order the cost of finished goods is not a correct like below mention calculation
If we make separate production order " wrong cost "
A value - Rs.100
Finished goods B Value 50% out put - Rs.100
Finished goods C Value 50% out put - Rs.100
Actual correct one is under below
A value - Rs.100
Finished goods B Value 50% out put - Rs.50
Finished goods C Value 50% out put - Rs.50
You cannot produce more than one finished item on a production order at the present time. So if you are experiencing the problem you describe, you are doing something incorrectly. Can you post a screen shot of the input screen for a production order you think has this problem?
As stated above - you currently CAN’T have one Raw Material input and two+ Finished Goods outputs within Production Orders - Read here for suggested Production Orders - Enhancements.
This wont work as the examples above are only referring to money values not quantity values, in fact, no quantity values were ever mentioned.
I don’t see the need to include wastage at all. Crediting Inventory on hand for the raw material quantity used removes it from inventory. Debiting the output items adjusts their quantities. The quantities do not need to balance in a journal entry, only the amounts. Assuming the wastage has no value, there is no need to include it. Then it never shows in inventory, even momentarily. As long as the journal entry amounts balance, the cost of the raw material will be fully transferred to the output materials.
Of course, if the wastage will be sold for scrap or salvage value, that is a different story.
Being a Journal Entry - it was only added for transparency, to prevent someone from saying in the future - hey those quantities don’t add up - perhaps alternatively a note could have been added.