Costing and other implications of buying a BOM item

Dynamics 365 for Finance and Operations/AX User Forum
1

Hello everyone,

Here is a situation where I need your advice. There is this one particular item in my inventory for which I do both: purchasing and production. Earlier production was minimal for the item and therefore could manage the situation by using the inventory journal. Of late, the production portion has grown and I am thinking of using the production functionality of AX (Report as finished journal is what I have in my mind) for the production portion and thereby changing the item type to BOM and defining the BOM components.

What I am concerned here is that, how will it impact my purchasing of the item. I am using weighted avg costing and FIFO for settlements.

Looking fwd for your opinion.

2

Hello!

If anybody can give me any insight into this, it will be really helpful for me.

3

Well it will impact on nothing except the costing, and rightly so. If you chose to purchase it then the purchase cost is used, if you chose to make it the production cost is used, the stock is then held as per your costing method. Depends on the cost of making versus cost of purchase, but AX will show you the true cost of both.