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Hi All
I'm testing the functionality of non-inventory type components in product orders. So create a non-inventory item (manually entered cost) and created a BOM with just this item. Once the production order is finished and component consumed, I don't get the cost absorbed to the finished good. Two liens appear on item ledger but the output line with zero as below:
What is the purpose of NON-INVENTORY type in production if the costs are not rolled up? or am I missing some settings
>cannot fully understand why BC is designed this way
i must say this daily as i work with BC.
we migrated to BC from an admittedly antiquated system about a year ago. We distribute our manufacturing costs as a function of the weight of finished good, in our previous system we simple setup those costs as an item on the BOM, but since you can't consume below 0 in BC, and we need to manually change that cost each month, we had to turn to a development customization to factor the cost of a work center against the unit of measure weight of an item.
our items run at the same rate through a process but incur more costs per unit depending on weight.
Hi Samantha
I checked our environment and it turns out those parts that behave the same way you wanted were Inventory item before then through development converted to Non-inventory items. This is not recommended at all but this has happened because those items were registered under certain law and they could change or loss history.
I wrote a blog a while ago where I discuss Non-Inventory items a bit (there are some new features) which is here
In any case, my experience with non-inventory items is that they are often added to the BOM to track their need more than for their costs. In most cases that I've seen in the past, they are expensed when purchased and therefore are usually part of the manufacturing overheads. examples like packing tape, welding wire etc. You need them - but they were costed as consumables and are not part of the BOM.
If you need to consume the costs of an Item against a production order, by the nature of the costing it needs to be an inventory item with a quantity. That way it can credit some account and debit WIP.
I think some other ERP systems don't transact against the G/L in real time with the consumption. They can get away with this kind of thing,
Not sure if that helps - but it does basically explain it.
I agree with you, I think non-inventory item introduced by MS with rush to match with some other systems. Compare to other systems, BC non-inventory requires lots of improvement.
I have 2 types of non-inventory item in my system. From cost standpoint one behave like an inventory item and another does not. I still do not know why is that. I tried to replicate the first group but so far had no success. if I can figure out why is that I will share here.
If you can kindly submit your idea about costing here and post the link here I can vote for it. This way at least it is a chance MS implement it for future.
Thanks. This is what I suspected but cannot fully understand why BC is designed this way as in other systems you have a standard cost non-inventory item with a GL account mapped to wherever the cost should go same as when allocating capacity costs. I think there are some data structures in BC that are harder to change from the legacy application and we have to live with. So the two options:
1. Create and inventory item - problem : this comes in picking list and stock take etc.
2. Create routing with backflush
Hi
If you have an item that you want to capture the cost then inventory item is a type to use. We use non-inventory item for below scenarios
1) We want to make sure item is part of BOM for MFG purpose but item has no cost. For example required label by law. This label has no significant cost but still we want it part of BOM for MFG purposes.
2) Catalog in packaging. Has no meaningful cost but it helps assembly team.
3) Some hardware that we do not want to keep as inventory (since it requires lots of work to keep inventory accurate) but we want to keep track of usage. This way we have a usage but we do not need to adjust our inventory all the time.
Since you cannot change the none-inventory cost then even if cost consider in BOM it will be a wrong cost after some times.
Most comprehensive explanation I’ve read: archerpoint.com/.../
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