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Setup Costs in BOM
09-12-2013, 11:07 AM
Post: #1
Setup Costs in BOM
Is there a way to have a Setup Cost that is independent of the quantity in a BOM?

For example, if I have Raw Material A, Raw Material B, and Setup Cost C making Finished Product F. 1F = 1A + 2B + $75. So no matter if the work order requires 20 F or 1000 F the setup cost will always be $75. The setup cost is essentially a die used in the manufacturing process.
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09-12-2013, 01:21 PM
Post: #2
RE: Setup Costs in BOM
Hello,

You could create a service component with a fixed cost.
Die setup - or similar. Or maybe a labour type item so the die-setters can record their actual time for each work order.
The bill of material is always the quantity per unit of finished production - in reality you don't know this until the run size is determined in a batch process with fixed cost elements. This is one reason why the variances arise.

Phil Daintree
webERP Admin
Logic Works Ltd
http://www.logicworks.co.nz
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