I'm trying to determine what the best way to track the costs of external processes on inventory items? hoping some folks around here could chime in.
1. 10 x Widgets item number (RMWIDGET1) are purchased as a raw material and upon completion of the payable invoice, it is entered into inventory at it's given cost from the vendor.. EX. $5.00 Each
2. The 10 x widgets require a secondary process and are sent out with a PURCHASE ORDER to a 3rd party for processing. Ex. Chrome electroplating. This cost's another $5.00 Per WIDGET. A new inventory Item number (ASWIDGET1) is used for the purpose of tracking the cost of the electroplating.
3. When the 10 electroplated widget's are completed and received, the vendors invoice is processed and the inventory quantity of ASWIDGET1 is increased 10 Pcs.
4. Now we have 10 x RMWIDGET1 in stock, and 10 x ASWIDGET1 in stock. These costs need to be combined to get the true cost of WIDGET1 and the quantity of THE RMWIDGET1 needs to be removed so we're not creating inventory out of thin air.
5. An inventory adjustment is made to remove the quantity and cost of RMWIDGET1 and add the cost of those widgets to the ASWIDGET1.
6. the ASWIDGET1's are built into FGWIDGET1's, with other components and assembly costs, and finally sold.
Is there a better way with sage 50 quantum to automate this or streamline this 3rd party processing? I find doing the adjustments to be cumbersome, and they take enough time to make it kind of annoying...
An alternative method to the above, I thought about creating a new item number "ASWIDGET1 PLATING ONLY" for purchase orders, and using the BUILD FROM BILL OF MATERIALS to add the cost of the RM and AS together to a stockable part. My biggest issue with this method is it could create confusion because it creates an inventory item that can't be physically found. AS soon as it's plated, it becomes the ASWIDGET1 so It's more or less just a dummy item number, for the purposes of tracking and ensuring item costs are added up. My understanding is that is not best practice.
What do you guys think? Are there any other ways to achieve the desired result, without creating phantom item numbers or doing an extra adjustment every time?