Skip to main content
Solved

BOM Costs - Average Cost Method

  • 10 June 2024
  • 4 replies
  • 89 views

I am wondering if there is any way to do a BOM cost roll using Average Cost. For example, we need to be able to provide pricing to customers before we publish the new pricing but need a way to find out the new BOM cost with a pending price. Since we have not purchased anything at the “new/pending” cost, it is difficult for us to accurately provide new pricing for finished goods from a BOM.

Is there any way that we can do this in Acumatica?

Thanks

4 replies

Userlevel 5
Badge +2

Hi @cwoodward,

I believe that for the Cost Roll is used for manufactured items.

Manufactured items, unless you do a cost roll every day to update the costs, it might be worth putting the items on a standard costing methods, and their component parts on average costing. This gives you the ability to control prices e.g., perform a Cost Roll monthly/quarterly and update prices each time you perform a Cost Roll, and the variances in costs for the finished product will hit your WIP Variances account each time your production order is closed.

 

Hope this helps!

@aiwan - thanks for the reply, components of our BOMs are also sold as individual items so it seems as though the best way forward is to change everything to Standard Cost which will help our purchasing team to use pending costs to do the Cost Roll and create accurate pricing for us and our customers

Userlevel 5
Badge +1

@cwoodward You can still run the cost roll for the BOM with the finished good as Average cost and Archive it afterwards to record the history of the cost roll.

The only limitation is that you can't use the Update Pending cost feature, which updates the Pending cost for the finished goods. 
For Purchased/Manufactured items, depending on the Valuation method cost gets rolled to the Finished goods. 
 

 

@PragatiMalviya64 makes sense, however this does not help us create an accurate sell price if we have a price increase on one or some of the components.

Looks like the only solution will be to switch to Standard cost in order to get the most out of this side of Acumatica

Reply