Calculating Standard Cost (BOM)

Debbie140

I have a question about the adjust cost for a BOM Item. If you create a BOM item with 2 components each at £10 and run the Calc. Std. Cost, the Standard cost on the item card is £20. If you take a component out of the BOM Item and run the Calc. Std. Cost the Standard cost goes to £10. All of which I would expect.

If I then remove the remaining component in the BOM item and run the Calc. Std. Cost the Standard cost stays at £10.
Is this what you would expect rather than the cost reverting to 0 or a warning about the standard cost might have changed as it is no longer a BOM?

I am guessing that the cost routine sees the item is not a BOM anymore and so doesn't update the cost leaving it as it was. Or does standard cost take in to account the last Standard Cost when it calculates for non-BOM items?

Any advice would be appriciated. Thanks

Debra.

David_Singleton

Debbie140 wrote:

I have a question about the adjust cost for a BOM Item. If you create a BOM item with 2 components each at £10 and run the Calc. Std. Cost, the Standard cost on the item card is £20. If you take a component out of the BOM Item and run the Calc. Std. Cost the Standard cost goes to £10. All of which I would expect.

If I then remove the remaining component in the BOM item and run the Calc. Std. Cost the Standard cost stays at £10.
Is this what you would expect rather than the cost reverting to 0 or a warning about the standard cost might have changed as it is no longer a BOM?

I am guessing that the cost routine sees the item is not a BOM anymore and so doesn't update the cost leaving it as it was. Or does standard cost take in to account the last Standard Cost when it calculates for non-BOM items?

Any advice would be appriciated. Thanks

Debra.

Its a little bit complex. In the routine to calc. std cost there is a recursive function that looks for BOM components, to see how far down it needs to go to get the cost. If it reaches a level and there are no Components, it assumes that to be a raw material, and the recursion ends. Passing back the standard cost of that Item as the cost at that level. So in reality there is nothing to calculate. Adding an error message is not logically possible.