Hi,
With Bill of materials, the system will take the next available components layers (based on valuation method) at the time of posting to determine the cost of the finished good.
So for simplicity purposes assume I have the following two items (both FIFO perpetual) on my BOM. Below is the layers in the IV10200 purchase receipts.
Component 1.
Date received 1/2/2021 QTY Rec of 5 QTY sold of this layer is 2. Unit cost $1.00
Date received 2/4/2021 QTY Rec of 3 QTY sold of this layer is 0. Unit cost $1.50
Component 2.
Date received 1/15/2021 QTY Rec of 10 QTY sold of this layer is 10. Unit cost $3.00
Date received 2/4/2021 QTY Rec of 5 QTY sold of this layer is 2. Unit cost $2.00
Assume the Finished good is made up of 1 of each component and you build one Finished good.
When you post the cost of the finished good would be $3.00
Component 1 would be $1.00 since there is some left of that first layer. We pull first in first out.
Component 2 would be $2.00 since the first layer is all sold and the second layer has quantities left.
Add them together and it's $3.00.
Hope this helps explain how it's working with FIFO perpetual.
Thank you for using Microsoft Dynamics Communities,
Angela Ebensteiner
Sr Technical Advisor
Microsoft Dynamics GP
