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Production BOM Creation

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Posted on by sriram

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Hi,

Please clarify the following

How to create BOM including Packaging item and Packaging Item should be accounted in Packaging and not COGS
In difference process how BOM will be created if that process output will be utilize in next process

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Maroof Ibrahim 91 on at

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Hi,

Please refer the following link to know in detail for Creating BOM and Formula,

docs.microsoft.com/.../create-a-bom-and-bom-version

Also you can use packaging Item as input material by Creating Item/Product with configure Posting accounts for Packaging Materials for separate financial impact,

Kindly check mark the suggested if get the following,

Thanks,

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Ludwig Reinhard Microsoft Employee on at

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Hello Sriram GS,

For No 1:

Can you elaborate what you mean by saying that ... should be accounted in packaging and not in COGS. I don't understand this part and would be happy if you could elaborate.

For No 2:

Is your second question related to sub-BOMs and how different BOMs and sub-BOMs are linked? Would be great if you could also provide some additional information here.

Many thanks,

Ludwig

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sriram 781 on at

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Hi Ludwig,

My Requirement is , in the production Order costing, the packing material cost should not go to the production ledger. it should be captured under difference ledger

Regards

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Weaveriski 23,620 Moderator on at

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Ultimately it will go to COGS because it is part of the cost of the finished product if it is part of the production process.

Can you justify adding material to the cost of a product and not including it? You are overstating the profit of the product by removing these costs. You could write off the packaging and then consume it as a different item that is not stocked to see it in teh BOM, but if you use the item, you are using the item :-)

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