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Multiple BOM Levels

Former Member
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I have a BOM 200001 with my finish goods with all of my Raw Materials Listed.  I would like to add a sub BOM 200014 for direct expenses.  I have created Allocation Accounts in the GL to allocate the direct expenses.  I have created sales part numbers for each of the direct expenses and have the allocation accounts specified on the part numbers.  I have created a part number called direct expenses 200014 and a BOM for the direct expenses 200014.  Within the BOM 200014 I have all of my direct expense part numbers.

When I create production orders it is allocating the expense to the BOM part number 200014.  I do not want it to allocate the expenses to the BOM part number.   I want it to allocate the expense to each part number under the BOM.

Please let me know if anyone knows how to do this?

Regards,

Fred

Accepted Solutions (0)

Answers (1)

Answers (1)

Former Member
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Hi Fred

Is the parent item 200014 an inventory item or service item? Why do you need to have it in a sub BOM?

Kind regards

Peter Juby

Former Member
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Peter,

Thank you for responding.  The parent item 200001 is an inventory item and a production BOM.  The sub BOM 200014 is not an inventory item.  It is a sales item only and is an Assembly BOM. 

I know we can have each direct expense item (labor, electricity, water, ect.) as separate line items in the parent BOM, but we do not want all of those lines to come into the production order (confusing for production and we do not want them to see labor costs, though it would be difficult to calculate and it is a blended average).  We would like the parent BOM and the production order to be cleaner if possible.  Please let me know if possible otherwise we will have to put each line item under the parent BOM 200001.

Regards,

Fred

Former Member
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Hi Fred

I think the limitation you are getting is as a result of the Sales BOM. They are designed for sales and not production, and the concept of the parent not keeping quantities in the warehouse and usually representing it's children items is probably why you are getting a lump effect.

Usually with multiple levels of production the idea is to manufacture the sub item first and then the main item. I must admit that I have never tried it this way so this is all assumptions. I would have to test it and see the actual postings on the receipt of production and closing of the production order to understand the system's behavior.

Have you tried changing the Sales BOM settings under Administration > System Initialization > Document Settings > General TAB > For a Sales BOM in Documents Display and choose the components option. Not sure if this has any effect on the production though. You could also try making the 200014 item a phantom item.

In summary, I am not convinced that you will get it to work the way you want. It would probably work if the 200014 was an inventory item and you first produced it and then the main item. I know this is an extra step, but maybe the only way it will work.

I will let you know if I find a solution when I have some time to create and test this scenario.

Kind regards

Peter Juby