Units of Measure - Bill of Material and Inventory Use

Question

A simple task is taking too long to figure out - we purchase pre-printed labels that we apply onto each box. We don’t sell these labels but do have them include in our BOM’s since we apply a label onto each box of finished goods. We purchase the label on a roll of 500 labels per roll and we apply 1 label per finished goods box.

My Base Unit and Sales Unit is set to Label and my Purchase Unit is set to ROL500. I have a Units of Measure conversion set as From Unit: ROL500, To Unit: LABEL, Multiply 500.

To test the conversion, I perform an Inventory Transaction Adjustment where I add 2 ROL500 (1000 labels). The unit price of $12.50per roll appears correctly and the Ext Cost is the price times 2. I then release and see the 2 ROL500 added at the correct cost.

When I go to the Inventory Summary screen, it shows that I have a quantity of 2, but the UOM is displayed as LABEL even though I added ROL500. I want it to show ROL500 since that’s what we purchase. The Inventory Valuation Report shows that I have a quantity of 2, but it doesn’t display a UOM so I don’t know if it’s ROL500 or LABEL.

In Bill of Materials, this item is listed a LABEL with a quantity of 1. But the cost associated with the 1 label is showing as the cost of the entire roll, not 1/500 of the cost as expected.

What do I have setup incorrectly that’s causing these issues?

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Generally, Acumatica standard inventory screens all automatically convert quantities and display them in base unit, which is ROL500. There’s no out-of-the-box solution to segregate inventory on hand based on purchase UOMs.

For the BOM costing - rightfully once the inventory cost is updated from an IN Tran, any new BOMS where you add the item should calculate the cost and convert automatically, eg. 1/500.

The only reason I can think of is you added the LABEL item to your BOM before you released the IN Adjustment, as a result the old cost is still on the BOM (it does not auto-update on each transaction). If you want to update the new cost on old BOMs, you can run Cost Roll and set it to update the material price. Or test it by adding LABEL to a new BOM.

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kokjietan · Accepted Answer

Generally, Acumatica standard inventory screens all automatically convert quantities and display them in base unit, which is ROL500. There’s no out-of-the-box solution to segregate inventory on hand based on purchase UOMs.

For the BOM costing - rightfully once the inventory cost is updated from an IN Tran, any new BOMS where you add the item should calculate the cost and convert automatically, eg. 1/500.

The only reason I can think of is you added the LABEL item to your BOM before you released the IN Adjustment, as a result the old cost is still on the BOM (it does not auto-update on each transaction). If you want to update the new cost on old BOMs, you can run Cost Roll and set it to update the material price. Or test it by adding LABEL to a new BOM.

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