Bill of Materials - BOM Inventory Costing Update

Function

The Bill of Materials A listing of materials, operations, and subcontracts used to describe the manufacture of an item. Inventory Costing allows printing and/or costing of exploded bills of material for all bill numbers or for a selected range of bill numbers. The costs of all components will be updated from the Inventory Items file. The costs of subassemblies are first updated in the Inventory Items file and then retrieved to calculate the cost of the higher assembly The joining together of items and/or parts to make a product. That product might also be a part or item for another product assembly.. The cost of the higher assembly is then updated in the Inventory Items file. When running this task, the user is reminded to first run a BOM Costing Report, and to run Inventory Valuation Report before and after:

How inventory costs are updated depends on the Inventory Control application parameter setting for "Inventory Costing Method."

• When set to Standard (S), the parent and all sub-assemblies, including phantom A bill of materials coding technique that provides for utilizing similar groups of components in multiple bills. These groups of components are defined once, but used many times. A phantom is like a subassembly that is never stocked. bills are updated.

• When set to Replacement (R), costs for both parent and phantom bills are updated.

• When set to Average (A), only phantom bills are updated.

Note: BOM Inventory Costing Update considers a bill a "phantom" if the "Phantom Bill?" checkbox is checked on the Bill of Materials Master record.

=> To access this task..

Select BOM Inventory Costing Update from the Inquiry and Maintenance menu.

BOM Inventory Costing Update

About the Fields

In the Beginning/Ending Bill of Materials Number field...

• Enter the first/last bill number that is to be listed.

• Press [Tab] key to use the first/last bill number on file.

• Click to display all valid bill numbers.

In the Effective Date field...

The effective date will be used in conjunction with the effective and obsolete dates entered in the bill to select valid items.

• Enter the effective date for the bills which you want printed.

• Click to select a date using the calendar tool.

• Press [Tab] key to accept the default of the current date.

In the Warehouse ID field...

• Enter a valid warehouse number for material availability.

• Click to select from a list of warehouse codes.

When finished making entries to the fields…

• Click to process the report

• Click to clear the form and begin again.

• Click to save the settings.

Since this update will change your inventory valuation for all assemblies and finished goods, verify that an Inventory Valuation has been run.

The costs of all components will be updated from the Inventory Master File. The costs of subassemblies are first updated in the Inventory Master File and then retrieved to calculate the cost of the higher assembly. The cost of the higher assembly is then updated in the Inventory Master File.

Upon completion of the update process, another Inventory Valuation Report should be run to reflect the new inventory values.

• Enter [Yes] if the above information is correct and proceed with updating costs.

• Select [No] to exit from the process.

NOTE: An asterisk (*) next to the component item number indicates a bill number.

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