Packing Material cost


IN the Finished Goods BOM, the packing material should be added wiht Zero cost

While generating the BOM for the finihsed goods , the packing material should be wiht zero cost

Hi gssriram,

I assume that your need is that in the production process, the packaging material needs to contribute with zero cost to the whole amount. Is it necessary just in the production itself or the packaging material does not need to provide any cost at any moment (no inventory cost, no reception cost, no transactions cost…)?

You buy it at.a cost but want it absorbed at 0? Why? Does it cost 0?

Hi Cazot,

I need to have the Packing material in the BOM lines, but the cost of the material should be accounted in another GL, not under the production head. Is it possible to configure the packing material under different GL in the production order.

Hi Adam,

I need to maintain the inventory

but on consuiming through the production order, the cost should be observed under different GL , not under production head

It is difficult to say the precise answer to your need, this is going to be solved with the application of the production accounts assigned to the item group both to the finished product and your packaging materials. I was in a similar situation many years ago and I wrote about it in this forum but couldn’t find the thread. Bassicaly what I did was playing arround with different combination of the accounts in the item groups I mentioned, tested many production orders and after every production transaction (posting picking list, report as finished, end) I exported the GL account balance to an Excel and see how the amounts where moving between the accounts, after that I could know which account to put where to have the desired effect in the GL.


How about defining the item as Phantom category. will it meet the need

I will ask the next why :slight_smile: Why should the consumption for the production order be 0? You want to relieve the inventory asset account at 0 at consumption in relation to production, but then somehow reduce the inventory asset account of the value without impacting the cost of production? Why?

Let me see if I understand you. Suppose the packaging material costs $100, you want those $100 to be posted in GL when consumed for production but not under Production headers but in a different header as eg. Expenses. If this is the case, no matter what line type you use, phantom or any other of them, will make accounting in the accounts defined at the Item Group. Item group is the place you need to change account so they post in different GL header.

The paint will impact inventory at of the product, push to wip and form part of the finished product cost. You could look at indirect negative offset for the cost, but posting groups alone don’t solve this if I understand correctly