which costing method need to use to update the cost for FG ?

Hi All,

Created an Inventory BOM Journal (not Manufacturing BOM) made from several components all in stock and with attached costs.

I then complete a BOM Journal to create the finished item and having run adjust costs . I noticed the Last Direct Cost isn’t updated to reflect the sum total of the components that were used to make the finished item is this normal.

How the cost will update for FG ? If i made FG from BOM journal then which costing method need to use to update the cost for FG ?

Thanks and regards

Hi Pioneers,

Any suggestions about the above problem ?

Thanks and Regards

It is depending on clients requirement, cost will be calculated based on client requirement. Not able to fix particular costing method for item cost calculation

What is the costing method of the BOM item?

I Mentioned in the Above there wont be fixed costing method for BOM items, It depends upon clients requirement.

Each item has a costing method. This is a process being run, so the item involved has a costing method.

Stating there will be no fixed costing method it depends upon the clients requirements is not relevant - they already have a defined costing method, it is associated and now they have an issue. I am asking the question for one obvious reason.

Thanks Steven Sir,

Item A costing Method - Average and B , C materials costing method also Average.

Pls throw some light on this.

There are now one of 2 options

  1. Run the adjust cost item entry routine.

  2. If 1 does not resolve it then it is likely the BOM journal was not designed for this. In earlier versions (prior to 3 from memory) the BOM journal intentionally did not update costs, if you wanted this the argument was you used production. I thought this had changed, but I am not up to speed so you would need to contact your partner/Microsoft to clarify the functionality in the BOM journal.

Thanks Steven Sir,

We ran the ACIE batch job , still item costs are not updated . As you said still BOM journal does not update the costs for NAV 5.0 / 2009 version also.

Let me know one thing it it does not update the costs , then what is advantage to have the BOM journal functionality ?

Please explain to me sir .

Just to clarify I did NOT say the BOM journal does not update the costs.

There are other settings and configurations that could potentially impact these on cost updates. There are also changes to the software. My memory says this did not work pre-3, but did in 3 and 4.

You also have to consider how the costs are built and updated.

My recommendation is to contact your partner, or if you are a partner contact Microsoft.

The advantage even if it did not work is that it saves you keying in 100’s of lines into a journal each time you want to reflect the parent in stock.

I think that it depends on Item, material and client requirements. And big factor is market niche.