BOM Journal Calculation in Ax2009 ?


In Ax 2009, I’ve a BOM item (ex: 0001) and 4 sub items attached to it. In BOM item form, i have mentioned Base purchase price as Rs. 4500, cost price as Rs. 8750 and sales price as Rs. 10000. When i created a BOM journal & assigned active version to it and tried to post it in Journal lines- it is showing price in the cost price field as 3603.00.

My query is how it is calculating the cost price as 3603? is there any formula for it? I have mentioned cost price is 8750. then how come it is taking 3603?

I’m new to ax, so please guide me with the calculation process.

Thanks in advance.

Ganesh B.


Can someone help me on this query?

Ganesh B

Look at the costing method of the item, the costing method of the components, the dimension group based costing impact of the components and then the cost of the transactions inbound that have made up the consumed items. My guess is you are something like average costed and the 3603 is the cumulative average cost of the items being consumed.

Thanks adam for reply.

Can you explain me in detailed. As I’m new to Ax, I don’t have in-depth knowledge. If you can give me small example & explain me how this cost price calculation is happening. I have mentioned FIFO as my Inventory model group, then how come it’s taking avg cost.

Ganesh B

You have not told us in this post the costing method. It takes average and applies FIFO at the end process.

I suggest you create a simple BOM with two lines, these are new items and you receive several purchase orders in, then process the BOM journal and invoice everything and run the inventory close and verify the transactions.