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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / BOM vs Current Cost
Microsoft Dynamics GP (Archived)

BOM vs Current Cost

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Posted on by Community Member

I am the accountant at manufacturing firm and we have not understood much how the BOM cost for a manufactured item is different from the Current Cost. How do we adjust so both reflect the same? What is the impact? Thank you.

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    Current cost is the most recent cost.  Let's say I order 100 blue widgets at $5 and when the qty on-hand hits 25 we order more but this time the cost is $10.  Well, on the next BOM I'm still using ones from the $5 batch.

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    Community Member on at

    Thanks Geet, I understand that it is a weighted average or perpetual average. Does this mean the BOM cost is frozen? So do you adjust the BOM cost each time (At specific times) or do you adjust the current cost of the finished goods? Thanks again.

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