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How to handle smaller value items on BOM (Read 713 times)

Mike_Djirdjirian Browser Posts: 21	How to handle smaller value items on BOM 01/05/06 at 12:07:23 We have some smaller value items (hardware) that we like having on BOMs for costing and quality control, but we would like to not issue it on work orders and for end of year inventory we would like to not count it. Is there a designation we can give to this type of inventory that would allow us to do that? ???
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lmk223a

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ARe: How to handle smaller value items on BOM
Reply #1 - 01/06/06 at 04:48:31

Change the inventory Type to "N" for noninventory - however, then DBA/EVO will not keep a count of this part.

Also, change the Class for this part to move its costs to a non-inventory General Ledger account. For example, a BOM may include some small items like nuts/screws, packing supplies or chemical adhesives too small to measure so we charge these misc. items to shop expense by coding them as type N and assigning a Class 5080 which is set to charge GL for shop expense.

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Linda Kucan

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shadowcaster Active Member I'm not here because I know what to do. Posts: 678 Gender:	Re: How to handle smaller value items on BOM Reply #2 - 01/06/06 at 07:21:55 Personally there are no "Special Items" once you dont count one item everyone wants all items to be special I say count everything. MHO J Dub
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Lenette

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Re: How to handle smaller value items on BOM
Reply #3 - 01/06/06 at 08:04:02

Ditto J Dub... I'm all for accurate tracking of parts.

However, we did take things like tape, rubber bands, etc used for packing, etc out of our BOM. Our intention has been to add a N part to the BOM that would roughly account for the total cost of said misc. items. Of course these are items that are used for more than just production/mfg. (note i said intention... maybe after Phoenix we will be more inclined to do so).

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Lenette Egan
McDantim Inc
Helena, Montana

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Cyndee Pappas

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EVO~ERP 2006.1
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Re: How to handle smaller value items on BOM
Reply #4 - 01/06/06 at 09:20:00

We issue things like hardware in bulk (maybe 500-1000 at a time) to an indirect work order, which relieves inventory and expenses them to "Floor Stock". When stock gets low, production empties the bin and zeroes out whatever DBA says is on hand. We do count them at year end.

I had globally deleted all "floor stock" parts from the BOM, but ran into trouble with infrequently used items. Now they stay on the BOM with a zero quantity. This causes them to show up on "where used" inquiries. I put the quantity used with the notation "Bulk" in the reference field. We do have to pull up the BOM to see quantities, but at least it points us to the correct BOM. Someday, in my nonexistent spare time, I'll put the stuff I removed back on.

Cyndee Pappas
Industrial Data Systems
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cathyh

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Re: How to handle smaller value items on BOM
Reply #5 - 01/06/06 at 09:40:34

We actually have quite a few parts that are "N' types that are expensed when we buy them and therefore we don't count them because they are not an asset. They are on BOM's for our finished products, attached to a sequence, and get backflushed to them along with counted parts, which credits the expense account and puts the cost into the end item where we want it. These are usually items that would cost much more than they are worth to count them every month, or even every quarter. We don't include them in MRP, instead use a card system to order when a certain level is reached.
Works for us- we don't have a huge number of parts though- almost as many FG part numbers as Raw Materials.

Cathy Hamilton
Wing Inflatables, Inc.
EVO-ERP2008.1(20 users) w/IS Tech update 5/25/09 (as of 08/21/09)
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ISTech Support Forum › Evo-ERP and DBA Classic › Manufacturing

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