I have an issue with the way "Inventory Bill of Materials" journal is posting into the GL.
I notice something undesirable with the way GL voucher/posting is created.
My expectation would have been - all components are removed from inventory (credit), and the finished good value is add (debited into inventory account).
Instead, what I see:
the components are removed from inventory (credit), and the value is debited into "Inventory Expenditure, Loss" account.
The finished good is entered into inventory (debit), and the value is credit from "Inventory Expenditure, Gain" account.
So this mixes the BOM journal "activity" with posting generated as a result of writing up/writing down inventory quantities.
We stamp "product category" financial dimension on our inventory gain/loss ledger accounts in order to be able to analyze our total margin per product category.
The problem the above posting creates is that for items we use to construct kits, it will look like a lot of inventory is being "lost" (while in fact it just get converted into the kit), and for the kit, it will look like we are "finding" a lot of inventory when we would look at the GL.
Is there a way to prevent the BOM jornal from generating posting from/to the Inventory Expenditure Gain/Loss ?
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