BOM cost after production is only equal to my raw material cost, direct and in-direct cost are not included

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Posted on by Abdo Khoury

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Dear

I have created a BOM with raw material , direct and indirect cost. i have produced my item and reported the production order as Finished, so i went to the on-hand quantity but my cost price is only equal to my raw material cost , the direct and indirect cost that were showing in the estimation didn't come through.

what am i missing in the setup ? what could be the cause?

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RE: BOM cost after production is only equal to my raw material cost, direct and in-direct cost are not included

I can help you if you share some pictures, I cant find the form that you are talking about.

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Fredrik Sætre 12,644 on at

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RE: BOM cost after production is only equal to my raw material cost, direct and in-direct cost are not included

How did you add the indirect costs?

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Murthy2601@hotmail.com 637 on at

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RE: BOM cost after production is only equal to my raw material cost, direct and in-direct cost are not included

Hi,

Please check whether you have setup the Labor Cost - (Cost Category) and Indirect Cost (Overheads) you can check this from Costing Versions in the Inventory Management Module.

Regards,

Narasimha

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Weaveriski 23,616 Moderator on at

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RE: BOM cost after production is only equal to my raw material cost, direct and in-direct cost are not included

Where were the indirects you were expecting - against the raw material or the route?

On the view tab of the production order list there is an indirect cost transactions option in the related information section - what does that have?

What is the costing method of your item?

In the production parameters on the General tab in the Report as finished section do you have "Use estimated cost price" ticked?

Have you ended the order yet?

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Abdo Khoury 14,855 on at

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RE: BOM cost after production is only equal to my raw material cost, direct and in-direct cost are not included

Dear

those are the forms that i was referring to

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Abdo Khoury 14,855 on at

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RE: BOM cost after production is only equal to my raw material cost, direct and in-direct cost are not included

hello fredrik

thanks for your help, i added them on the cost sheet , but maybe this is not enough, what setup am i missing ?

appreciate your help , thanks

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Abdo Khoury 14,855 on at

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RE: BOM cost after production is only equal to my raw material cost, direct and in-direct cost are not included

Dear Narasimha

thanks for your input ,

the below is the cost version for the item price

and the indirect cost

as for the cost categories

appreciate if you can help, thanks

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Abdo Khoury 14,855 on at

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RE: BOM cost after production is only equal to my raw material cost, direct and in-direct cost are not included

Dear Steven

thank you for your questions

Where were the indirects you were expecting - against the raw material or the route? i added the indirect cost , on the route itself

On the view tab of the production order list there is an indirect cost transactions option in the related information section - what does that have? it is empty , that means , indirect cost is not recognized, right

What is the costing method of your item? I am using Weighted average (but i have to use it , i can swtich to another method if it gives me what i need)

In the production parameters on the General tab in the Report as finished section do you have "Use estimated cost price" ticked? use estimated cost is NOT checked

Have you ended the order yet? yes all my order is finished

thank you for your help

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Weaveriski 23,616 Moderator on at

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RE: BOM cost after production is only equal to my raw material cost, direct and in-direct cost are not included

Can you post a picture of the posted route journal, and in the production postings from the order what value is associated with the route transaction - how did you post the route - manually or automatically?

What is the status of your production order?

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Abdo Khoury 14,855 on at

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RE: BOM cost after production is only equal to my raw material cost, direct and in-direct cost are not included

Dear

This is the posted route journal

and as for your question regarding whether i posted the route manually or automatically , well i am relatively new to production but i think you are talking about this , i could be mistaken so please correct me if i am wrong

appreciate your help

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