Build from bill of materials - accounting is not affected

SUGGESTED

Hi everyone,

Our company uses Sage 50 quantum,  and when I used the build from bill of materials my inventory account is not affected.

Thanks for your help.

  • 0

    I would think that this is correct. It has been a long time since I have used the inventory module on a regular basis so I might not be current in my thinking. If you have five items in inventory at a total cost of $X.xx and you use all five of these items in a build of one item which is now added to inventory the cost of the inventory has not changed. The individual items are taken from inventory at their cost and made into one item which is now added to inventory at cost. Unless you have an additional item or two which is added in the build such as labour or warehousing costs the cost of the new item should be the same as the cost of its parts.

    My one client who uses Quantum does not use Inventory so I cannot test this reasoning.

    I hope this helps

  • 0
    SUGGESTED

    Hi 2412

    In the chart of accounts for the sample company there are multiple Inventory Asset accounts. I have created one called 15100 Finished Goods

    The other Inventory Asset accounts I use for the raw materials which make up the build. When I create the build from the bill of materials the main Inventory Item for the build Control Account in the Inventory is 15100 Finished Goods. 

    If you use a seperate account as the screen shots show you will see the changes in the inventory accounts, otherwise if you use the same account for raw materials and finished goods for your Inventory Asset account when you do a build you will see NO change because the same account is used and it is a wash.

    I makes no difference as to which flavour of Sage you use; Pro, Premium or Quantum they all behave the same way.

    I hope this helps make things more clear. 

  • 0 in reply to The Software Coach

    Thank you so much for your answer,  I have created separate accounts for finished goods and raw materials, now I have another question the transactions that I created before this change, can I fix it?