varying ratio raw material vs. finished product

Question

We have a varying ratio of raw material vs. final product. Only at the end of the month we can find out the real ratio after having done an inventory count. How can this be properly processed in Sage 50? 
 Here is what I would like to do: 
 Inputting all the incoming raw material every 7 days max. 
 Inputting all sales as they occur which means that we would sometimes have a negative amount of finished products as I am doing the assembly only at the end of the momth. Does this work at all? 
 At the end of the month I will do my assembly with a standard ratio and then do an adjustment depending on the real ratio after inventory count. 
 
 Any thoughts?

Best Business Strategies · Answer

That would work but I must warn you, you will have a system cost adjustment and your financial statement will change when you make the month end adjustment.

Best Business Strategies · Answer

When you create assemblies and you don't have the true cost, it will use the last cost. As you create the assembles with the correct the balances, it will adjust the true cost which will increase or decrease your income. 
 I don't know that there is a more manageable way to do this, unless you created the assemblies daily with the outcome of production that day and did inventory more often.

Sage 50 US

varying ratio raw material vs. finished product

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