Question

Add non-stocked items (consumables) to Bill of Material?

  • 26 August 2021
  • 4 replies
  • 691 views
G
Userlevel 3

Our engineering team have posed the question, and I can not figure out how to add consumable items to our bill of materials, other than creating the consumable item as an inventory item.  This causes issues with the inventory team, as they do not want to increase the cost of inventoried items.

Does anyone have any suggestions or are the consumable items meant to be left out of the bill of materials?

Reason engineering was asking, they are trying to get a ‘true’ cost for manufacturing an item, and the consumables are simply absorbed in the overall costs of manufacturing.

Thanks,

Glenn

Glenn Owers Sr. Business Analyst Safran Electronics & Defense Canada Peterborough, ON Canada Version: 2021.2..23

4 replies

V
Userlevel 1

We setup such items as Non-Stock and Non Qty Bearing, this will results their Stock Quantity will be always 0 and now inventory transactions will be recorded. Such items can still have a STD cost and can be added to BOM with Qty Per > 0. Form the inventory standpoint, they do not affect anything. From the BOM, you create your own report to get BOM cost by using Qty Per and Mtl Cost for each material.

J
Userlevel 1

We set up what we called Expense items, like Loctite, tape, those type of items.   Parts are given a different part class so that they hit an expense account, not inventory.   Cost does not get added to the cost to MFG the part.  I like the idea of the 0 qty part on the bom also.   When we first started with Epicor that was not an option.

G
Userlevel 3

Thank you @vshevchenko  and @Jack.Pennypacker  for your responses.  I have passed them over to the engineering team for their review and to see if either would meet their original request.

Glenn Owers Sr. Business Analyst Safran Electronics & Defense Canada Peterborough, ON Canada Version: 2021.2..23
P
Userlevel 3

Both had quite good ideas.

However, I prefer for “expense items” to use Stocked=true and Qty bearing=false.

 

Paul Jackson CFO Aseptico Woodinville WA

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