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Multiple BOM
03-16-2012, 12:25 AM,
#1
Multiple BOM
I was setting up a test on work orders when i get confused with the following example:

the customer order 4 custom made boxes, it's a "to order" purchase. The 4 boxes are diferent in size and colors so every one has differents BOM. It's a custom made product so no need to stock control.

I setup a new manufactured item as dummy item. But when i enter the BOM i discovered that one item can only has one bom. It makes sense the most of the time but not in this example because i have to setup 4 dummy items to get the BOM. If the company always sells custom made solutions the amount of dummy items will be astronomical.

Another problem that i face with this is how are waste material controlled? for example the BOM says that 4 meters of iron are needed but the operator screwed up and ended up using 8 meters. How are this waste asociated with the cost of the sale?
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03-16-2012, 05:51 AM,
#2
RE: Multiple BOM
Each item's cost is derived from it's bill of material.
When a work order consumes more of a material than is dictated by it's BOM then this is written off to material usage variances in the profit and loss - until you update the BOM with the more appropriate usage.
Phil Daintree
webERP Admin
Logic Works Ltd
http://www.logicworks.co.nz
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