COST IN BOM

[mongos30]

I need help in what would be the best way to handle cost in the BOM. Currently, we include cost (labor, duties, South/Northbound Freight, Overhead, etc) in the BOM put we run into a problem when a POP is release. When we release the POP the cost would be expense even though in reality it would take about 2 month for the goods to come back from plant as FG. The release of the POP is done with "Y" because we want to take all components out of our Raw Material Inventory. My question is: Is there any flag we can put at all cost (ex. overhead) that when is release would not hit the G/L until come back from the plant and production is reported?

 

[MacolaHelp]

If you have these set up as inventory items & you release PP to Y issue, you will get the distributions for the labor & overhead even if non-stocked. However, if you set up & use value added cost in PP, roll up into costed BM w/VAC & tell your items to use VAC in PP, you will get relief of component inventory @ issue, but VAC will post when production is complete.

Please note that labor, freight, etc are intended to be expensed/debited at the time the cost is incurred. The VAC will use an offset absorption account to show you on the financial stmts how much of those costs are being re-allocated to finished good inventory $.