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Christine T.

production cost inquiry screen

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Can someone explain the difference between Material and component on this inquiry?   The bom is configured with 3 components however the first component line displays in the value in the Material field and the remaining two components in the component field.  Is it that the first BOM component is Material and all other components used value under Component?

i'm a bit confused by this inquiry.

thanks for help

C

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    Hi Christine, 

    Basically, the value in the component field shows the total raw material cost of the BOM and the value in the material field shows the total cost of the components of the BOM.

    For example, I have 2 components on the BOM. Product A is a semi-finished product [Type (P) in NA-ITMCOST] and product B is a raw material [Type (M)]. 

    In the Production cost inquiry, the material cost is 87.3085 USD, and the component cost is 15 USD (STD cost).

    Here the material cost includes both the raw material cost (15 USD) and the semi-finished product cost (72.3085 USD).

    So, I would run the standard cost calculation without an update and have a look at the NA-ITMCOST report to understand the cost calculation.

    In my opinion, the component cost with type "P" is not included in the component value. 

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  • 0

    Hi Christine, 

    Basically, the value in the component field shows the total raw material cost of the BOM and the value in the material field shows the total cost of the components of the BOM.

    For example, I have 2 components on the BOM. Product A is a semi-finished product [Type (P) in NA-ITMCOST] and product B is a raw material [Type (M)]. 

    In the Production cost inquiry, the material cost is 87.3085 USD, and the component cost is 15 USD (STD cost).

    Here the material cost includes both the raw material cost (15 USD) and the semi-finished product cost (72.3085 USD).

    So, I would run the standard cost calculation without an update and have a look at the NA-ITMCOST report to understand the cost calculation.

    In my opinion, the component cost with type "P" is not included in the component value. 

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