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Is it necessary to set the item price for a finished goods item in D365 F&SCM?

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Posted on by 23
Hi All, 
I have the 3 questions:
1. In the Release products list page, how do you know which item is a finished goods item? For material, I see the letter  "M" in front of it.  For labor, I see the letter "L", but I did not see the finished goods. 
2. Let say D0002 is a finished goods item.  Is it necessary to set the item price for a finished goods item? You don't need to, right? Because the cost of a finished goods item is determined after production is complete.

 
3. If you want to include machinery depreciation costs in manufacturing costs, how should you allocate that cost so that it is part of the final production cost of the item? Do use cost category and attach that cost to the finished goods item's route, D0002, in this case?  
 
 
Thanks. 
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  • CU23091914-1 Profile Picture
    CU23091914-1 23 on at
    Is it necessary to set the item price for a finished goods item in D365 F&SCM?
    Thanks, Danny, for your response!
  • Suggested answer
    Danny Bilodeau Profile Picture
    Danny Bilodeau 4,256 Super User 2024 Season 1 on at
    Is it necessary to set the item price for a finished goods item in D365 F&SCM?
    Hi,
    1. There is no predefined differentiator to isolate a puchased, raw material, semi-finished or finished good items. The user defines the differentiator using any number of groups available on the Released Item form.  The group that is more often used to differentiate is the Item Group.  But you could also use Product Categories or some other fields (eg Buyer Group, Item Model Group,...)
     
    2. Item price is mandatory only if the Inventory Valuation method on the Item Model Group is Standard Cost.  If an item valuation method is standard cost, you will not be able to complete production process without a Standard Item Cost.  Otherwise, you are correct, the finished good item`s cost will be the total of labour cost, material cost and overhead cost defined on the Costing Sheet.
     
    3. I guess it depends how granular you want to be in assigning machinery depreciation.  Do you want to use one standard fixed depreciation cost value (in which case, you'd probably assign a fixed overhead cost in the Costing Sheet).     

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