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Microsoft Dynamics AX (Archived)

how to calculate the production BoM price in AX 2012?

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Posted on by 5,990

Hi, we are using FIFO.  I understand the AX uses the running average to calculate the cost price of the raw material. But how about the cost price for BOM in the production order?  

When the production is started, the material consumption shows the cost prices of the raw (here AX uses the running average which shows correctly in our case). 

However, how could I let AX calculate the production BoM cost price (based on the material cost and / or labor indirects) automatically. I know there is an option in the production control parameters (we use manufacturing execution) somewhere I couldn't find it. 

here we want the RAF to match the material consumption (as we don't have labor and overheads). But AX picking up the cost price from Finished Good Items - cost price as manually entered, instead of calculating it from the raw materials 

I know we can run the BoM calculation and activate it - however, will it automatically change as the receipt costs change? 

appreciate your help 

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  • Suggested answer
    Community Member Profile Picture
    on at

    You have to read some about standard cost and actual cost... in other words the cost calculation differ according to inventory evaluation method... although you are using FIFO in purchased items,,, the proper practice is to use Standard Cost for manufactured items...

  • Suggested answer
    Community Member Profile Picture
    on at

    No it will not chage automatically as the receit costs changes.

    Once you update a purchase order as 'END' cost details gets final and cant be changed.

    please look into below link

    msdn.microsoft.com/.../aa571840(v=ax.10).aspx

    Please verify and update with your findings

  • Weaveriski Profile Picture
    23,620 Moderator on at

    You cannot manually enter the cost at production and have this be the cost. Your costing process is driving this, you have chosen FIFO and therefore you will get a form of estimated cost at RAF and once ended and the inventory close run you will get an actual cost based upon your costing method for the produced material.

  • Rohit0Sharma Profile Picture
    345 on at

    Our Pruchased Items have Inventory Model group of FIFO.

    We would like the manufactured items to follow Standard Cost model.

    However, it appears that for BOM calculations to work the components of the manufactured items also need to be fmanufactured items to follow Standard Cost model. I get 'zero cost' warnings when I do a BOM calcuation.

  • Weaveriski Profile Picture
    23,620 Moderator on at

    That will depend on the fall back principle defined on the calculation as a starting point.

  • Suggested answer
    guk1964 Profile Picture
    10,888 on at

    You will probably find that FEFO (not FIFO)  suits better and you can set a paramter to use the inventory value

    Your other option is to mark orders which effectively gives you average cost and for the marked order atkes it out to the inventory cost model

  • DmitriJ Profile Picture
    10 on at

    Hi Rohit0Sharma, have you resolved the issue with FIFO purchased items on the Standard cost finished products?

    We are having exactly the same problem. The fall back principle is set to "Active" on the standard costing version.

    Many thanks,

    Dmitri

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