Adding cost to a production order

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Posted on by claganson

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I have a very simple need. I just want to add a cost of .10 per unit of finished goods onto a production order. I cannot add to the bom as there is no vendor involved and no part number. This is just an internal cost we wish to add and it will be specific to the part number (might be .10 for 1 part number and .15 for a different part number). What is a simplest way to do this? As an example, if I report as finished 500 pcs in the production order I want to add $50.

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Fredrik Sætre 12,644 on at

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You could add a route operation that is auto posted,, but BOM is the way to go.

You could also add an indirect cost in the costing sheet to a service, but that is mainly based on the base cost of resouces...

The simplest and probably only way would be to use a service item (Non stocked = no, physical inventory = no) and add it to thr BOM. You don't need a vendor and you part number can be anything you like.

Create an item called 'overhead' or something, and add it with a cost of $1. Then add a qty pr. required cost amount. Both fixed and dynamic can be used.

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claganson 765 on at

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I had actually tried what you suggested prior to this post. I sent up a product and assigned it the item model group we call NonStk which has "stocked product" and "physical inventory" both set to false. When I put the item on the bom it tells me "An item cannot be associated with a BOM if it is associated with an item model group where the attribute Stocked product is not selected." Is there a configuration setting somewhere else that I need to change?

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Community Member on at

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Have you considered using the "costing sheet" functionality? It allows you to define an indirect cost based on quantity or net weight or volume (weight and volume have a fixed UM defined in UM master table)

This costing sheet line is called "output unit based" type and the cost rate could be defined per item group or item

You can find it here: inventory management > setup > costing

You need to define cost groups prior to using it

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Fredrik Sætre 12,644 on at

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It must be stocked, but not have inventory. The issue is the naming of that parameter that is confusing.

Stocked parameter controls if there should be transactions posted in inventTrans, but that is most for cost allocation. You must use services, make it not have physical inventory, but it require inventory transactions to cary the cost and increase the cost of the item.

The stocked parameter is used in cases where you need expence items that are not to be used in BOMs or sold. I believe it was created so that you can use purchase orders for ALL purchases and incoming invoices without having to go through an inventory.

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Fredrik Sætre 12,644 on at

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The costing sheet issue is that it is hard to maintain it if you would like small variations between items that are manually defined.

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Ludwig Reinhard Microsoft Employee on at

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Hi claganson,

I agree with Frederik and the costing sheet might be the easiest way. It is not specific for a product but at the end of the day you are making an cost allocation, which is never exact

If you assign your items to specific cost groups you could specify indirect costs for those groups. This is not item specific but cost group specific and might reflect your requirement better.

Best regards,

Ludwig

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Community Member on at

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Actually costing sheet can be item specific when you define rates

You can enable this feature using the parameter called "per item" on the upper section of costing sheet form

This parameter has an effect on CostSheetCalculationFactor table \ form where the classic option item \ group \ all option becomes available, where "group" is linked to item group and not to cost group

This allows you to keep cost groups agnostic (you can have a unique "cost group" called for example "finished goods") having the "item group or every single item" driving you to the correct "per piece rate"

Of course costing sheet needs maintenance, though defining "a single item rate" requires an accuracy and time on every scenario we touched

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claganson 765 on at

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Thank you so much - this is exactly what I needed to do.

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