Indirect costs on Bill of Material

Hello, I have a question about using Resources in a bill of material. I have an option to have a resource in a bill of material, how is it accounted in G/L when I produce that Bill of material. I might use the resource for labor or overhead. Please suggest a solution to account for labor and overhead separately when I produce a BOM Thanks

Mohan The resource will use the General Posting Set-up. As there is no Business associated with the BOM journal this is treated as “blank”, the Product Posting group is associated with the defined resource. In the General Posting set-up the resource cost will be posted to the inventory adjustment account defined. Whilst the BOM journal will handle labour and overhead to some degree it depends upon the complexity of reporting and GL visibility required whether it will prove successful. Overhead is tricky depending upon whether you are talking fixed or variable. The solution you require depends upon the complexity of your requirements and what you want from the system. Whilst the BOM journal handling is not fantastic it is feasible. As you are aware Navision manufacturing does handle this better with the capture of overhead against various options (machine centre, item etc) and labour is captured in a variety of ways. I would suggest if you need to account for overhead and labour that you look at the manufacturing option, unless of course the BOM journal handles all of your needs. Steven Weaver