Hi all,
What are the recommended options for using KanBan items in a Production BOM while still ensuring their costs are included in the rolled-up unit cost?
Currently, we’re using backflushing manufactured items, and all our raw materials are purchased items.
We’ve removed KanBan items from our BOMs because, during output posting, they were causing “insufficient quantity” errors. This has been holding up our Production Manager. These items are physically KanBanned on the shop floor, but they’re not always moved or reflected correctly in Business Central, which leads to the mismatch.
Our initial idea was to create a “Consumables Kit” (An item with a Production BOM) to group these items and include it in higher-level BOMs purely for costing (no routing). However, after removing KanBan items from BOMs entirely, we’ve lost accuracy in the unit cost.
Our manufactured items use FIFO costing, so actual unit cost is driven by consumption and sales. However, we still want BOM structures to reflect a more realistic expected/rolled-up cost.
Has anyone implemented a better approach to:
- Avoid backflushing issues and output errors from KanBan items
- Keep operational BOMs clean and manageable
- Still include these consumables in expected/unit cost calculations
Any practical examples or recommended setups would be appreciated.
Thanks in advance.
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