Item Cannibalization Process

ajay_jha_121

Hello All,

How Item Cannibalization can be done in Navision-5.0?

Will doing Positive & Negative adjmt. is the only way? Please suggest.

ara3n

first time hearing Item Cannibalization. can you explain it.


I'm thinking you can use production orders, BOM journals, Kitting,

If you use Positive/negative process the cost will not be carried over.

ajay_jha_121

Item Cannibalization means breaking the complete one Item into multiple items (say components) & then selling each items(parts) individually. Yes you are right that cost will not carry forward. Apart from this, doing Postive & Negative adjmt. creates lot of problems. One cannot use this for SAD claim etc.

But what would the best way so that the following process can be done error free :-

Say Item A purchased @ 10 unit cost
Then Item A is broken into two parts -- B & C

Then Item B & C are sold individually @ different selling prices.

How one can maintain proper Cost flow according to accounting principles & how to claim SAD as SAD claim is Item no. dependent?

Ex:- Item A (Qty purchased & Sold) need to be tracked.

ara3n

Bom journal or kitting would work for this.
As for tracking sales, you need to write a report that will print the sales based on components.

There is still questions, like if Item A is made up of 3 Item B and 4 Item C

and you sell 2 of Item C, How many Item A have you sold?

ajay_jha_121

Hello Everyone... thanks 2 everyone. BOM is the best option.

kapil4dynamics

ajay_jha_121 wrote:

Item Cannibalization means breaking the complete one Item into multiple items (say components) & then selling each items(parts) individually.

No, cannibalization is addition in portfolio of similar kind of products. E.g. One new Suv launched by toyota, which obvisouly may compete with some other SUV of there own in the market. "Eating itself".

kapil4dynamics

<Edit>

David_Singleton

Actually cannibalization is a very common term to mean "reverse BOM" it goes back to when you would have one device/item/widget that was damaged and could not be used, so you would cannibalize it for spare parts.

ara3n

thanks david.

David_Singleton

ara3n wrote:

thanks david.

:thumbsup: you are welcome.