Costed Bill of Materials Inquiry

Costed BOM Inquiry enables you to examine the standard cost breakdown of an assembly. The Costed BOM Inquiry report displays individual and aggregated assembly costs. This report shows how different cost components roll up to an assembly item based on the Bill of Materials (BOM). This includes material and conversion costs (labor and machine costs).

For example, the Costed BOM Inquiry helps a cost accountant in a manufacturing environment see the different cost components associated with building an assembly. It can also show how each component is calculated and rolled up to the finished goods.

This provides visibility into variances between inventory values at a certain time (displayed on the Inventory Valuation reports). It also provides visibility in the desegregated component costs of the assembly.

After you select the subsidiary, location, and assembly, the inquiry displays the cost breakdown of the assembly and its member components. This assembly cost is calculated based on the standard cost of components.

For assemblies that have a conversion cost, the assembly cost is calculated as follows:

• Component cost is based on the component cost displayed in the inventory revaluation transaction.
• Conversion cost is based on the assembly inventory revaluation transaction.

For assemblies that do not use routing, the assembly cost is based on the component cost displayed in the inventory revaluation transaction.

Standard costing and assemblies must be enabled to use the Costed BOM Inquiry. You can run this inquiry for a standard cost assembly item only.

To enable Standard Costing:

1. Go to Setup > Company > Setup Tasks > Enable Features.
2. Click the Items & Inventory subtab.
3. Verify that the Inventory box is checked.
4. Check the Standard Costing box.
5. Click Save.

Prerequisites

• If the Multi-Location Inventory feature is not already enabled, you must enable it to use Standard Costing.
• Navigate to Setup > Accounting > Accounting Preferences. >under Order Management, make sure Use Item Cost as Transfer Cost is disabled.

To run a Costed Bill of Materials Inquiry:

NOTE: To display a value, sub-assemblies must be a standard cost type. If a sub assembly contains a component, the unit cost value is taken as a sum of all component’s costs.

1. Go to Transactions > Manufacturing > Costed Bill of Materials Inquiry.
2. If you use OneWorld, select a Subsidiary.
3. Select the Assembly you want to show a costed BOM for.
4. If you use the multi-location inventory feature, select the Location you want to view data for.
5. To show only the top level member items details check the Top Level Only box. Sub-assembly information is not shown. Clear the Top Level Only box to show all member items.
6. To decide what to include in an assembly, select a BOM Display Control option:
   • By Date – determines the date for querying assembly item components. Components are displayed based on the following criteria:
     • Selected date is greater than or equal to the effective date.
     • Selected date is less than or equal to the obsolete date.
   • By Revision This field is available only when an assembly item uses Revision Control for its Effective BOM Control value.
   • When assembly items use Effective Date as the Effective BOM Control value, the date field determines the date querying components of the assembly item. If an assembly item uses Revision Control, you can query the components either by Date or by Revision.
     • If you select By Date, then follow the process described in step 5 above.
     • If you select By Revision, then in the Revision field, select a revision. The active components for the revision are shown and the Date field displays the revision Effective Date.
7. Select the Bill of Materials you want to run.
8. To change the inquiry Effective Date, enter a date, or click the calendar icon to select a date.
   • The Top Level Material Cost field displays the material cost for the top level assembly selected. This cost is summed for all components.
   • The Top Level Conversion Cost field displays the routing cost for the top level assembly. This field is available only if you enable the Manufacturing Routing feature.
   • The Total Unit Cost field displays the sum of Top Level Material Cost plus Top Level Conversion Cost. Component costs are displayed only for standard cost components. Non-standard cost components are displayed with a cost of zero.