AX 2012 - BOM Calculation

Hi,

I am a beginner of using AX 2012. I understand that the BOM calculation will calculate & roll up all the cost from raw material (RM) up to the parent lot.

There are 2 scenarios i would like to ask:

1. Say the RM is a purchased item, if the price change from 1.00 to 2.00, will the system auto calculate and roll up and thus show the new cost for the parent lot?

2. Say the RM is a manufactured item and its inventory model is Std Cost, if the price change from 1.00 to 2.00, will the system auto calculate and roll up and thus show the new cost for the parent lot?

Or

Is there a batch update BOM calculation function?

1. Yes depending upon your costing method, dimesion configuration and processing (inventory close)

2. You have to run through the standard cost updates of ALL items. If you choose not to roll it up then it is not part of the parent standard cost until rolled.

May I know what kind of costing method will roll up the RM cost to parent lot?

Thanks,

Alice

Anything except standard, which uses standard and waits for teh next single level calculation to be processed into the costing version.

If you have a component part at a different cost on an ended production order where consumed and invoiced cost are different you have not run the inventory close which pushes all known costs through the system.

Hello Adam, I have one related question here. If I use FIFO for both RM and finished good, then I would assume that the cost for the finished good is rolled up based on the BoM calculation group automatically, cost group set up for RW and the cost category defined for the route/overhead.

1. In such case, would I need to define a costing version for the finished good? As I understand this would apply only to ‘Std cost model’. I would use planned cost type for simulation possible I presume.

2. Without the costing version, how could I defined the labor overhead?

3. How could capture the purchase price, production cost variance (from what I understand, the std cost model offer detailed variance)

4. Could I have FIFO for RW and std cost model for Finished Good? In such case, BoM calculation, assuming if possible, needs to be done manually.

Many thanks

1. In such case, would I need to define a costing version for the finished good? As I understand this would apply only to ‘Std cost model’. I would use planned cost type for simulation possible I presume.

Planned cost is still valid for cost categories and indirects, but you would not enter items in it.

1. Without the costing version, how could I defined the labor overhead?

You cannot (use cost categories is an option)

1. How could capture the purchase price, production cost variance (from what I understand, the std cost model offer detailed variance)

There is no production cost variance as there is no standard, the cost is the cost (including changes flushed through from the inventory close)

1. Could I have FIFO for RW and std cost model for Finished Good? In such case, BoM calculation, assuming if possible, needs to be done manually.

Yes. You can have a fallback principle to active and it will pick up from the item card.

I have another question…

Hi all,

I am dis-assembling a chicken into leg, breassst, wings, drum stick etc. When i disassemble some wastage also produces. I want to allocate cost of wastage on finished goods based on quantity or value of finish goods (i.e. leg, breassst, wings etc.) . How can i achieve this in AX.

I have configured following:

1. Created chicken as production type = None
2. Created leg, breasst, wings, drum sticks as production type = Co-products.
3. Created wastage as production type = By-product.
4. Created a Chicken planning item of production type = Planning item

Next i created a formula for planning item and set Chicken as its line item and Leg, drum stick etc. as its co-product and wastage as by-product. I also set wastage as Burden and set calculation as percentage.

Now when i create a batch order to process it, production module does not allocate cost of wastage to co-products produced.

Any idea how to allocate cost of by-product is allocated to co-products. How we can achieve the required behavior in AX 2012.