Hi All
I have a BOM part# 123 it has 3 parts in it.
Part A Cost=2
Part B Cost=4
Part C Cost=5
Total cost of bom 123= 11
There are no operations
Each part is a purchased part
(1) How does the cost of each individual parts drive the cost of the BOM
(2) How do you view this cost
Thanks in advance to all responses
Hi @Jamie-Lill have you looked at the BOM Cost report found under Production Management\Engineering\Reports?
Yes it show zero for each purchased item
Have you purchased any of the items yet? Do you have transaction history of cost?
Also, you may need an operation in the Method of Manufacturing. (MOM)
big deciding question that needs to be answered: “What costing method are you using?”.
Items have been purchased
Cost of each item is in the Epicor
They are collected together(pulled out of different bins) and sold as a sub assembly.
There is no MOM
If I add another part to the assembly the price of the assembly should increase automatically.
This sounds suspiciously like a Sales Kit.
Just because the product has been purchased, and has a price on the PO doesn’t necessarily mean that it has a COST loaded in the correct cost table. That is why i asked about the costing method. There is a field on the part that says whether it is STANDARD, AVERAGE, LOT, LAST, or FIFO costed (or a couple of others)… if it is standard cost, and you have not rolled the cost, then the cost will show zero even if you have purchased, and received the items.
The part cost is set to avg, the bom cost is set to avg.
When you examine the part(s) in Part Tracker are you indeed seeing a cost in the General > Costs > Detail tab?
Then you will get no cost information out of the system as no actual cost information has been entered/loaded into the system. I know it is easily entered if missing via a cost adjustment.
This leads me to believe that this was previously produced on a job with a Part On The Fly number? (for the parent part) and those types of jobs can only be make to order. And I would assume that the parts were buy to job as well? When stuff is made that way, then the parts never hit inventory, and that is when the costing information is updated in the costing tables.
My assumption was they were purchased and from stock items which can still be 0 cost if it was never entered/rolled up/adjusted.
No I was doing a test
I created on part A at 10 dollars
I created the second part B at 5 dollars
I created the third part C no price
I used eng work bench and added a+b to c
The price of c is zero, what am I missing?
Where did you put the cost? When you say you created part A at $10, where did you put the cost? A cost adjustment?
Yup, that’s not what it uses for the costing. Those are prices that you charge your customers. You need to do a cost adjustment to get the cost in the cost tables.
Cost <> price
My old boss (plant controller) drilled that into me.
Back when I was not a geek (kidding, that was never), I used the terms interchangeably. But they are not the same in accounting.
BOMs use part cost.
Thanks
If I had a part A cost is 10 and a part cost is 5. Then I make part C and use eng workbench to add part A and part B to C, I do not see and automatic cost it shows zero.
Any suggestions
