• Registered: 04/14/2009
  • Posts: 2

Topic: Cost roll up Feature

I recently setup a pilot install to evaluate front Accounting for use in a small sized manufacturing business. I am delighted with the elegance of the software and will very much want to use it in a production environment.

However, I notice that for manufactured items, after setting up the Bill of Material (BOM), there is no way of getting the application to carry out a cost roll up i.e compute standard cost for the item based on the components costs and quantities (similar to what the costed bill shows). In some of the Manufacturing applications I have worked  with before, this is usually the basis for updating the costs within the inventory. Is their a way to achieve same with FA? I did notice that when you raise a work order for the item it did what I wanted but Since you may want to base your Costing/ Pricing on this information, it should be possible to do a mass or selective rollup without recourse to fictious order generation.

Thanks for you help and anticipated response.

Muyiwa Laleye,

Lagos Nigeria

  • joe
  • Administrator
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  • Registered: 03/15/2007
  • Posts: 5,089

Re: Cost roll up Feature

When producing items the manufactured item gets it's material cost from the BOM items included eventually extra costs. These material costs are average costs based on the purchased items. FA does not use FIFO or LIFO but average material cost.

/Joe

  • Registered: 04/14/2009
  • Posts: 2

Re: Cost roll up Feature

Thanks for your response. i have 3 other issues.

1. I notice under MENU->SETUP->FORMS SETUP where you can review / correct next numbers that there is a form listed as Cost Update (last item). how can I access this form?. Maybe what I am asking for may be available here.

2 I am using the manufacturing for Feeds Manufacturing. Some of the components used are in small quantities(e.g premix), thus I need to work to 4 decimal places for quantities.

I tried adjusting the decimal places for quantities in the setup ->display but this had no effect within BOM. Kindly point me in the direction to increase the decimal places.

3. Is it possible in the future to be able to setup BOM as percentages?

Many thanks

muyiwa

  • joe
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  • Registered: 03/15/2007
  • Posts: 5,089

Re: Cost roll up Feature

1. The form for cost update is in the tab Items and Inventory, lower right. This is a form for manually adjustment of material cost.
2. The decimals in 'Units of Measure' in the Items and Inventory overrides the global unit decimals.
3. No, but you can use the decimals in point 2 as a guideline.

/Joe