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Former Member

When should I do cost estimate after BOM change

Hi everyone: We usually do cost estimate through CK40N at the start of every month. But sometimes our BOM changes several times in the same month. If we dont update the cost estimate then there would be variance in the production order. It seems I cant update cost estimate everytime the BOM changes because there's already a realeased cost estimate. I am wondering whats the proper procedure of BOM change and cost estimate? Is it necessary to update cost estimate everytime the BOM changes?

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1 Answer

  • Best Answer
    Posted on May 05, 2011 at 04:10 AM

    Hi Liang ,

    Cost can be released only once in a month .. Its not advisable to change BOM several times in a BOM. Why does it changes.

    If it keeps on changing.. you have to live with the variances comming ..

    Proper Process is to have a stable BOM and Cost estimate should be created after BOM . Cost Estiamte can be released once in a month ( before any material transactions )..

    Regards

    Sarada

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    • Former Member Former Member

      Thanks Vimal Because our financial manager doesnt want to process any variances generated according to BOM changing. Anyway I agree with you that we should not update cost estimate during the month because it will cause a lot of other variance.