Material Costs in reference to routings

Question

I am stumped and need to find some answers, hopefully someone here can help? 
 On the routings, each material item has an associated "Material Cost", I am trying to determine where is cost is coming from. It doesn't matter to me if the material part if purchased or manufactured. What I am seeing in our system is a lot of inconsistency. For purchasing items, I have looked at the purchase orders/invoicing, but that doesn't match up (we do use 'average', but even then it's not close.) On manufacturing items, I looked at the Work Orders completed and tried to get the cost from there, but again, nothing is coming close. I've looked at "Inventory Transaction Distribution" and still not finding what I need. 
 
 Does anyone know how the "Material Cost" gets updated? (we are on SAGE MAS 500 2013). Thanks for any input/ideas!

RussG · Accepted Answer

Alford - 
 The answer is a little challenging without looking at your environment. However, I think you can follow these steps to find the cost that is being used. And remember these might be out of sync if you have not recently run the BOM Regen for the routing or you have not saved the routing recently. (Note: This is a maintenance activity that many companies work with their partners to automate.) 
 For the Bill of Materials Explorer, the cost of a raw material displayed here will come from one of the following: 
 a) If your routing step has both the Item and a Warehouse specified, then the cost will be based on the Standard Cost as defined in the task Maintain Inventory for this Item/Warehouse combination. 
 b) If your routing step has only the item and the warehouse value is blank, but there is a default warehouse assigned for this item within the Maintain Item task, then the cost will be based on the Standard Cost as defined in the task Maintain Inventory for this Item/Default Warehouse combination. 
 c) If your routing step has only the item and there is not default warehouse assigned for this item on the Maintain Item task, but there is a warehouse on the Routing Header, then the cost will be based on the Standard Cost as defined in the task Maintain Inventory for this Item/Routing Header Warehouse combination. 
 d) If there is no warehouse defined on the Routing Step, no default warehouse for the item on the Maintain Item task, and the routing header does not have a warehouse, then the cost will be based on the Standard Cost as defined in the task Maintain Item for this item. 
 
 With regard to the work order transaction, this will be based on the current value of inventory at the time of the transaction. This will fluctuate over time. 
 Regards, 
 
 Russ Griffith 
 RKL eSolutions, LLC

Sage 500

Material Costs in reference to routings

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