I think this is a case where you need ‘roll up’ the costs to update the BOM.  We do it exactly like you do with a non-stock service item that gets it’s cost from a PO.  On the non-stock item, you do need to do Actions>Update Cost after it’s been on a Purchase Receipt (or you can enter the cost by hand).  Once the non-stock item has a cost, it should be reflected on the cost of any good produced with a Production Order using that BOM.

The prices on the BOM and the Production Detail are there for informational purposes and don’t necessarily reflect what is going to be used for the actual cost.  I think this is what the ‘Cost Roll’ is for though.  Once you process your BOM through the cost roll, the unit and planned cost on the BOM and the ProdO should reflect the current actual costs.

Thank you.

Just an update to this as I know know more:

Non-stock item costs are not updated with the cost on a purchase receipt, only Stock items are.  So if you want a non-stock item’s cost to be included on a Production Order, you have to manually give that item a price.  If the price changes between Purchase Orders/Receipts, you need to remember to update the cost of that item on it’s non-stock item screen.

If the item is on a production order and has a cost before the final move, that cost will be included on the Production Order.

You also have to have the backflushing on for the costs to come in. Within the original cost roll up, the nonstock items do not appear to be pulling into the costs (only stock items do). I will try and find some examples, but I have seen this a few times now. 

I’m wondering if anyone has more insight on how to get the costs on a Non-Stock item to get rolled into the actual cost of the finished good? 

We’ve setup a couple non-stock items that are specific to the production orders we’re working with - these display correctly on the BOM and are carried into the production order with a planned cost - however, when the production orders are completed, the actual cost remains at zero

Is there a way to cost non-stock items into the final cost with a production order?

Are you creating purchase orders for these items and backflushing? 

We are creating POs - although they’re not tied to an individual production orders.

We have raw materials that are being sent out for anodizing or powder coating after receipt. This is done in batches not specific to any individual production order - but those costs are pretty well fixed and we’d like to include them in the final cost of the finished goods

If it is not linked to the production order, the costs don’t come over. I wish it did, because that would be ideal to bring in the unit cost.

You can also just set the standard cost of the non stock item to $1 then when you create the PO, your qty of the non stock item matches the total cost of the outside process. This helps if the cost fluctuates production order by production order. 

That doesn’t work if you get charged a lot charge or have a per piece price that is different for your qty, or if you get charged by weight but the PO is in EA. 

@jeremyd45 In your mind what would be the best way to deal with having an outside process operation where you are charged a sterilization fee but the sterilization fee is unknown until the PO is created. We are unable to guess the cost and have it on the BOM backflushed because it varies production order by production order & Item by item (Various medical devices/supplies). Also need the cost to capitalize into the FG. 

@Lhouldsworth that is a good question. The ideal situation would be to use Actual costing, and pull the cost of the actual PO into the production order. You would still be seeing a variance on the production order, If you are not linking the production order, it becomes more difficult to get the costs into the product (unless you are looking at using landed costs, but I don’t love this idea).

@Debbie Baldwin @angierowley75 do you have any thoughts? 

@jeremyd45 The problem we are having is if the PO is cut with a non stock item with a qty of 1 at a cost of say, $2,750. The cost that gets put into WIP is just the standard cost of the non stock item (Ex: STERILIZE non stock item). But its not a set cost, one order the qty of 1 sterilize could cost $500 and the next it could be $750.

This is why we are trying to go the route of having the standard cost of the non stock item be $1, then on the PO we would purchase a quantity of 2,750 to get the full $2,750 worth of cost into WIP. 

That is a true statement. it really messes with the purchasing department to have to change the cost every time.