Query
Our customer regularly creates new assembly items with a new BOM. They want to know in advance what the cost price of the item is before they actually produce the item.
In NetSuite after a Work order completion you will have the projected value and after a transaction the Average Cost will be calculated. Is there a work around to calculate this projected value in advance so that the correct cost price can be determined BEFORE the item is produced or sold?
The new items are mostly based on an existing item but one of the raw materials will be different.
The costing methods of the Inventory items are
- Lot Numbered (raw materials)
- Fifo (packing materials)
Costing method of the Assembly Item:
- Average
Our customers use the Work in Progress en they would also like to see the Cost of the routings steps in the projected value. So not only the raw materials in the Bill of Materials but also the steps for the Manufacturing Routings.
Do you know there is a solution for this?
The solutions you provide is only for the components in the Bill of Materials.
Findings
I tried to look into possible workaround to calculate the projected value and here are the options I am able to find:
a.) Attempt to create an Assembly Build. When an Assembly Build is created, there would be a Projected Value field on the transaction;
b.) Bill of Materials Inquiry page (Transactions > Manufacturing > Bill of Materials Inquiry). This should show the overall average cost of each component, and subcomponent that make up the assembly;
c.) Saved Search to expose the Location Average Cost of components. Kindly note that through a saved search, we could only pull up the first level of components due to saved search limitations;
However, in the scenario you provided (costing method for the components are Lot Numbered and FIFO), I believe the first option would be the only one applicable since, in my tests, I was only able to show Average Costs in the Bill of Materials Inquiry Page and in the Saved Search.
In the standard NetSuite account, it seems that this is not available yet. It is also not possible in the above-mentioned workaround as only the costs of components are considered in the Assembly Build Projected Value calculation.
I know there is a option ‘Costed Bill of Materials Inquiry’ this displays the cost for the routings steps and the inventory but this option only works when you use Standard Cost. You can run this inquiry for a standard cost assembly item only.
It should be very nice if this solution is also available for other assembly item costing methods (ex. Average) and also the differtent costing method for the inventory items (Lot Numbered, Fifo etc.) of maybe an other field like the ‘Last purchase price’ of the componnents.