BOM Journals

Beatrice

Hi,

We have created a new BOM Item which contains 2 components.

The components were purchased, but not yet invoiced.

We have produced the BOM item through a BOM Journal, which was posted.

Then we entered and posted a sales invoice for the above BOM Item.

Next, the components as mentioned in line 2 were invoiced and item charges have been assigned to these components.

When I query the value of the components on BOM Registers, it is noted that it has been updated with the item charges.

But the legder entries on my sales invoice for the BOM Item remains the same and does not change.

Note that our client most often performs any item charges assignment to any GRN after the items have been shipped and invoiced.


This results in an undervalued Cost of Sales for the sold BOM item, whose cost should equal the total costs of all the components.

Is it right that the system does not readjust the cost of sales of the BOM Item.

Can someone please advise?

Thanks and Regards,

Beatrice.

Beatrice

Hi,

Anyone who has had an experience with BOM, please help me out.

We urgently need an advise.

Thanks in Advance.

Regards,

Beatrice.

insanni

did u do 'Adjust Cost - Item Entries' ?

Beatrice

Thanks for the reply.

I did run the Adjust Cost Item Entries, but the entries were not updated.

Thanks and Regards,
Beatrice.

AdamRoue

My memory, which is bad, tells me this was an issue with version 4. The link is broken between the output of the BOM journal and the components used, so once you book in the BOM journal the output cost is never adjsuted, although the component costs can be uplifted by the later item charges. If you were using Production this would naturally work. I beleive Microsofts stance was if you needed this level of complexity then BOM journals were not for you and you needed to use Production, but your best step would be to talk to your partner or Microsoft about this to clarify the situation.

I also presume you are not standard costed

Beatrice

Hi,

Thanks very much for the reply.

In fact, all our items have Costing Method: Average.

But will it make any difference if the BOM Item has Costing Method: Standard?

Thanks and Regards,
Beatrice.

AdamRoue

Nope it does not help at all, but the cost of the item would never change, and neither would the COGS, your differences would go to variance accounts. It would not change your situation at all, but it would mean the cost of the finished item would never change!