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Answered

Assembly output (finished good) cost with FIFO

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Posted on by 2,469

Hi All

We have components and finished goods (assembly header item) set up as FIFO. When posting an assembly order, item ledger entries do not roll up component cost. In the below example, 1 component item is purchased at 1$ and the assembly header item shows $30 (which is a historical cost of the parent item). \

The first line is assembly output and the second is consumption.

( With the average cost per day on Inv Setup Page (if it matters)).

fifo-costing-assmebly-output.jpg

  • Verified answer
    Samantha73 Profile Picture
    Samantha73 2,469 on at
    RE: Assembly output (finished good) cost with FIFO

    Thanks, guys

    The issue was automatic Adjust Cost/Item Entries not enabled in inventory setup

  • Suggested answer
    Community Member Profile Picture
    Community Member Microsoft Employee on at
    RE: Assembly output (finished good) cost with FIFO

    Samantha,

    Have you run Adjust Cost/Item Entries? If the Assembly Item Production BOM components rolls to $1.00 than this is what should appear.

    Thanks,

    Steve

  • Suggested answer
    MahGah Profile Picture
    MahGah 15,428 on at
    RE: Assembly output (finished good) cost with FIFO

    Hi

    I wonder if you go to that item card (assembly item) than what do you see for Unit Cost? If you click on Unit Cost what do you see? Also, I am sure you run (or have it automate) Cost Adjustment. 

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