MFBOMM BOM Manufacturing
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Selecting a BOM Code for a manufacture process enables an existing batch to be edited or a new batch to be created.
The raw materials, or inventory items, show the current stock on hand quantities and possible shortages. Changing the Qty To Make changes all component required quantities. Costs and current stock on hand values are updated every time the screen is accessed or refreshed. Components can be substituted.
Once a batch has been manufactured batch details cannot be changed. A manufactured batch is allocated a control number that is used to enable a process to be reversed. A manufactured batch can be unmanufactured (process reversed) which then enables the batch to be modified.
Current Cost is the cost to make the required product quantity based on the current cost of the product.
This Cost Budget is the Finished Goods Cost that is transferred to the Manufacture screen. The Finished Goods Cost can be changed in the Manufacture screen. Prior to committing a process in the Manufacture screen, raw material components that are controlled by batches, need to have batches allocated for the quantities required for the process.
Cost Of Sale Adjustment
The product being manufactured is treated in the same way as a stock receipt. Refer to the calculation of moving average cost.
Where a batch is unmanufactured, any cost of sale adjustment is not reversed, only the Finished Goods Cost value is reversed.
Linking A Job To A Batch
A job can be linked to a batch prior to the manufacture process. The job code defaults to the batch number, but the job code is able to be changed prior to creating the job. Job activities are created for the non inventory batch components. Non inventory items can include labour, sub contracts or materials, materials being items that are not stocked as an inventory item. These activities are shown in the job as budgets. Note that inventory batch components are not transferred to the job. Inventory items required for a batch process are taken out of stock.
Non inventory costs for a batch process are posted to the job. These costs are matched to the existing job activities. As well as the job costs being updated, the ActualCost column of the respective batch component item is also updated. If a cost is posted to a job where there is not an existing batch component item for the activity, a new component line is created by copying the item used as the last non inventory item.
In Summary
• | A linked job can be used to track non inventory costs associated with the batch to be manufactured. |
• | Budget activities are created in the job using the non inventory batch components. |
• | These activities are updated with actual costs as transactions are processed to the job. |
The job actual costs are reflected back in the bill of material batch as Actual Costs.
• | Subsequent changes to the BOM budget costs are also made to the job activity budgets. |
• | Costs will continue to accumulate against the BOM actual costs after the batch has been manufactured. |
• | The Finished Goods Cost is shown in the job as a charge. |