Costing (BOM settings)

It may be necessary to recost a BOM when it appears as a sub-assembly on a higher level product. This option determines the batch quantity that the system uses.

• Quantity Required from Bill of Material: Recosts each BOM based on the exact quantity required.

• Default Quantity: Recosts BOMs using the default quantity specified on the BOM record.

• Minimum Order Quantity: Recosts BOMs using the Minimum order quantity value on the Stock Item Manufacturing tab.

Select Always recost Sub-Assemblies to calculate sub-assembly When raw materials or components make a part of a finished product. The sub-assembly may be combined with other components or with other sub-assemblies in the manufacture of finished goods. costs when you perform a costing. Leave the check box blank to use the existing stored sub-assembly costs.

Note: If your BOM structure contains many sub-assemblies, it may take longer to calculate your sub-assembly costs when using the costing process.

Select Default to Roll up Sub-Assemblies into Cost Headings to set the default for the Roll up Sub-assemblies into Cost Headings check box on the Cost Breakdown window.

When selected, a labour cost on subassembly is represented as a labour cost on the top level BOM, rather than captured as a material cost.

Select Recost when saving if you want to be prompted to recost when you enter or amend a BOM. When you save a BOM, a warning message will appear, telling you to recost the saved BOM.

By default, Bill of Materials assumes that one person performs the manufacturing operations The labour, machine and tool processes required to manufacture an item.. If you want costings to reflect that more than one person performs manufacturing operations, select Use manning level. For example, if an operation takes two people 10 hours, Bill of Materials costs that at the equivalent of 20 hours. If you select the check box, you can enter the base number of people for any operation in the BOM record.

Miscellaneous items are not included in the standard stock valuation reports.

Select Include miscellaneous costs to include miscellaneous stock item costs when costing a BOM and post these costs to the Stock asset account when confirming a BOM build, or recording a built item.

Select Default to Calculate overheads automatically to include overhead costs in the BOM by default (Calculate overheads automatically will be selected for the BOM).

Select Use last calculated price for Sub-Assemblies to use the last calculated price for sub-assemblies during costing.

Note: This only applies if you do not select Always recost Sub-Assemblies.

Select Use most recent cost for Actual Cost Components to use the most recent cost for actual cost components during costing, instead of using an average of the costs.

This will give a more up-to-date costing for batch and serial numbered products using Actual Costing, as it's based on the latest and most recent cost.

Note: This only applies to components using the actual costing method.

Specify the markup percentage value you want to use during BOM costing.

Note: Obtain from component/resource Cost Heading is selected by default, when you first use the system.

• Obtain from component/resource Cost Heading: Select this option to use the markup percentage from the cost heading associated with the component or resource.

• Obtain from top level Bill of Materials: Select this option to use the markup percentage entered on the Details tab of the BOM record.

  Note: You must select this option in order to enter a markup percentage value on the BOM record.

  During costing, the BOM markup percentage value is applied to the components and resources. The markup percentage value on the individual component or resource cost heading is ignored.

  If the BOM is a top level BOM, the markup percentage value is applied to all components and resources in the hierarchy.

By default, a warning appears on-screen when your BOM module encounters an item with a zero stock quantity during costing. You can amend the stored cost in these circumstances, as the cost may be out of date. Select Prompt when stock level is zero to choose if you want to see the warning.

Select one of the following options to determine which cost rate is used for BOM and operation costing.

• Operation: Select Operation to use the cost rate stored on the operation record. This is the default.

• Resource: Select Resource to use the cost rate stored on the resource or resource group. The cost rate stored on the Operation record will not be used.

  Note: We recommend you select this, if you change resource cost rates after adding operations. The resource cost rates will be used when costing your operations.

• Resource Unless Overridden: Select Resource Unless Overridden to use the cost rate on the resource or resource group unless this has been overridden on the Operation record. If the rate has been overridden, then the cost rate stored on the Operation record will be used.

By default, a warning appears on-screen when the system encounters an item with a zero cost during the costing process. You can enter a cost later if necessary. Select Prompt when stock item has zero costs to choose if you want to see the warning.

Select Prompt for Subcontract Supplier if you want to choose a subcontract supplier during the costing process.

Note: This applies only if there is an active subcontract operation where more than one supplier can be used.

Leave the check box clear to use the supplier set as the preferred supplier on the BOM operation.

To enter cost history analysis settings, select Cost History Analysis Settings.

Note: Cost history analysis settings are saved with the costing settings for the BOM, when you click Save on the Maintain Bom Settings window.