Costing of phantom in a BOM

[Former Member]

Hi all

I'm trying to cost a material which has a phantom component in the BOM.

Can someone clarify if the phantom needs to be costed at all..? I mean, does "no costing" indicator need to be set in costing 1 tab of material master..?

Can someone explain this please?

Thanks very much

[Former Member]

Hello -

A phantom material does not need to have a standard cost becuase the costing program will ignore that particular material when calculating for the upperl level item. Instead, the cost of the components that make up the phantom assembly are taken into consideration. Any labor that is stored in the routing for the phantom assembly is also ignored if one exists.

Hope that helps.