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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / BOM Calculations - are...
Microsoft Dynamics GP (Archived)

BOM Calculations - are Floor Stock items calculated in Standard Costs

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Posted on by Karen Navas 155

Using GP 2010 with Manufacturing BOMs.  I have one item in my BOM that is marked as Floor Stock so when I look at the Material costs for MO receipts I see that it is not included because it takes the cost from the floor stock account as it should.  But when I look in Item Maintenance screen at the Standard Cost (we are using Standard Costs with FIFO Periodic) it seems that some standard costs are calculating the BOM costs with the floor stock items and some are not. Should the Standard Cost be a calculation of all the BOM components regardless if the item is marked as floor stock?

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  • Redbeard Profile Picture
    Redbeard 12,931 on at

    How floor stock costs are applied - The answer is it can be EITHER

    Floor stock is a designation for items that don’t need to be issued for a
    manufacturing order. Usually, the cost of floor stock items is not applied to the
    manufacturing order, but to an expense account you specify.

    To apply costs to an expense account When you use the Floor Stock
    options in Manufacturing—either in the Item Engineering Data window when you
    enter item information or in the Bill of Materials Entry window when you create a
    bill of materials—the costs of the floor stock items are applied to an expense account
    you specify in the Manufacturing Order Preference Defaults window.

    To apply costs to a manufacturing order Some companies prefer to have
    the costs of floor stock applied to the manufacturing order, but still don’t want to
    have to issue the floor stock items. To use this kind of floor stock, be sure all floor
    stock options are cleared. You might need to check both the Item Engineering Data
    window for the item and the Bill of Materials Entry window for the bill of materials.
    Then specify the same site for the issue-from and issue-to sites for the component
    item in the bill of materials.

  • Karen Navas Profile Picture
    Karen Navas 155 on at

    I do understand the costing on Floor Stock items and how they are setup to apply to an expense account, that is how I currently have them costed so that they do not get costed to Manufacturing Orders.  I guess I wasn't clear on what costs I am looking at.  It's not the accounts that get used when floor stock is consumed its how Standard Costs are calculated when using Bill Of Materials (manufacturing) and items in the BOM are floor stock items.  When you roll up costs into your Standard Cost does it calculate Floor Stock Items in the Standard Costs?

  • Suggested answer
    Redbeard Profile Picture
    Redbeard 12,931 on at

    Karen,

    I would have to look at the setup for your items, which are alternatively including and excluding floor stock from standard cost calculations.  My strong suspicion is, if an item is truly configured to be handled as floor stock, then it is not issued to work orders and are instead posted to an expense account.  Items configured in this manner do not include the floor stock in standard cost calculations.

    Alternatively, an item can have components set to effectively be floor stock by configuring the issue-to and issue-from site to be the same site.  This would likely result in standard cost calculations, which would include the value of these components.

    Perhaps you can look at the settings on sample items, which include and exclude floor stock materials from standard cost calculations to validate this?

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