How can you change an item from Inventory to Non-Inventory and minimize the issues with BOM, Inventory quantities, and costing issues?
How can you change an item from Inventory to Non-Inventory and minimize the issues with BOM, Inventory quantities, and costing issues?
Depending on your version, you can create a new non-inventory item and replace an existing inventory item in the BOM, but you cannot maintain stock nor produce a non-inventory item. It can more complicated if you are using Product Configurator or assembling BTO kits. On the other hand, some BOM and work order features are not be available if you are using Light Manufacturing. The BOM simply represents the cost of producing the item(s), while the inventory quantities for raw materials, finished goods or sub-assemblies are required to process the work order(s).
If you employing a discrete manufacturing model, you typically need to maintain your raw material quantities and rollup your costs when they change. Standard cost should be used for your produced items to allow BOM rollups to adjust the inventory costs of your produced items.
If you are running in a process manufacturing environment, you still need to maintain your raw materials and costs, but the challenges are usually a little different. If you are encountering a lot of instances where you run out of raw materials, then you should consider allowing negative inventory. The caveat is that you have to reconcile the negative material balances at some point before you get to -999,999,999,999, so your units of measure come into play as well. The cost for negative inventory is dependent on the costs and methodology you have chosen in the configuration.
If you need additional info, you will need to be much more specific as to your version, configuration and the problems you are encountering. There are literally hundreds of variations in the way you can configure and use the manufacturing and inventory features.
Depending on your version, you can create a new non-inventory item and replace an existing inventory item in the BOM, but you cannot maintain stock nor produce a non-inventory item. It can more complicated if you are using Product Configurator or assembling BTO kits. On the other hand, some BOM and work order features are not be available if you are using Light Manufacturing. The BOM simply represents the cost of producing the item(s), while the inventory quantities for raw materials, finished goods or sub-assemblies are required to process the work order(s).
If you employing a discrete manufacturing model, you typically need to maintain your raw material quantities and rollup your costs when they change. Standard cost should be used for your produced items to allow BOM rollups to adjust the inventory costs of your produced items.
If you are running in a process manufacturing environment, you still need to maintain your raw materials and costs, but the challenges are usually a little different. If you are encountering a lot of instances where you run out of raw materials, then you should consider allowing negative inventory. The caveat is that you have to reconcile the negative material balances at some point before you get to -999,999,999,999, so your units of measure come into play as well. The cost for negative inventory is dependent on the costs and methodology you have chosen in the configuration.
If you need additional info, you will need to be much more specific as to your version, configuration and the problems you are encountering. There are literally hundreds of variations in the way you can configure and use the manufacturing and inventory features.
*Community Hub is the new name for Sage City