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Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / Can BOM and BOM line h...
Finance | Project Operations, Human Resources, ...
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Can BOM and BOM line have different costing model without impacting BOM Calculations?

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Posted on by Ashish AX Functional 143

Hello All,

I have one doubt regarding Costing method and Costing version to be used for BOMs.

Can I use Standard  item model group for BOM/FG Item and MWA Costing method for the Raw materials for BOM Calculations?

For e.g. Lets suppose FG ITEM is set to STD and BOM Lines are Set to MWA and then i run costing calculation for BOM item using Standard cost then will the bom calculation will be generated correctly

I see that in order to generate BOM calculation, i have to give some Std cost price for the RMs although it is has MWA Costing method, then only when i run the BOM Calculation, the costing is getting calculated. What can be the implications of this and what is the suggested approach?

Shall we always suggest to use STD Costing for BOM and BOM Line or MWA for BOM and BOM LInes?I mean to say is that BOM and BOM should always have same Item model group?If not then what is the best practice for suggesting costing method for BOM and BOM line in case of customer is asking for different costing method for these.

Any help will be much appreciated.

Thanks

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  • Verified answer
    Dolores Young Profile Picture
    Dolores Young on at

    Hello Ashish,

    You can use standard cost for FG items and MWA for the raw materials.  You need to create an active cost for each raw material which is used in the cost rollup for the FG items.  

    If the cost of the raw materials is different to the cost used in the cot rollup, a price difference will be generated when the production order is ended.

    Regards

    Dolores

  • Ashish AX Functional Profile Picture
    Ashish AX Functional 143 on at

    Thanks a lot Dolores for the help.

    So if i have understood correctly then even if the RMs are using MWA, we have to create Std cost price in order to use them for the Bom calculations of the FG items.Plese correct me if i am wrong.

  • Dolores Young Profile Picture
    Dolores Young on at

    Hi Ashish,

    yes, you have to create an active cost  for the raw material (which you could base on the onhand cost) so that the cost calculation for the manufactured item takes the material cost into account.

    Regards

    Dolores

  • Ashish AX Functional Profile Picture
    Ashish AX Functional 143 on at

    Thanks a lot for the help :)

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