Sage 100

BOM outside Processing Sage 100 Ver 2013 My customer has a lot of outside processing - several on each Bill. The Bills are all single level. The Processing charge cannot be handled as a setup charge. The cost is not determined until the Outside processor presents their invoice. The processors' invoices in most cases have no direct relation to the actual quantity on the BOM Production Entry. What is the best way to add the cost to the Bill? They do not have Work Order.

What's the lag time between finishing the bill item and presentation of the invoice?

Interested in this question - have similar situation.

I want to hear what @BethBowers is going to suggest....

LOL, @ThereseLogeais . I'm just thinking if we know the price when we are ""making"" the finished good item, just setup a Misc charge with a cost of $1.00 and manipulate the charge during Production Entry by changing the qty of the misc charge item.

agreed. if the cost doesn't come in until after the production entry the only way to have the cost reflected in the inventory would be to do an adjustment. If you can estimate the charge accurately you cost post it with a misc charge and have it go to a ""processor clearing"" account then post the processor invoice to that account to clear it.

The lag time is about a week. They do not yet know the cost.until after Production Entry..

Unless you can delay the production entry I would think Alan's method would be the way to go if you can make a reasonable guess on the cost.

Turn it into a two level bill. Record the production for the sub-assembly without the outside processor charge. Then a week later, when you have the charge, run a final production entry to record the sub-assembly + processor charge.

good idea @MoiraGoggin, but what if the inventory is gone by then? Reminds me of the Receipt of Goods/Landed costs dilemma - seem to get a few of those every year... ""but we don't know the freight cost when we receive the goods."" I think the standard answer is - enter your best estimate and follow @alanniergarth's advice from there.

I have the same issue, although my client does have W/O. By the time the actual costs are determined for the O/S process, the W/O has been completed. Normally their items are manufactured and shipped within 2-3 days. Although I really like the idea presented by @MoiraGoggin, their time table will not allow this. Thanks @alanniergarth for giving me the confidence I need to stand my ground here :) You people are just GREAT!!!

I've run into this too many times. Client states that the outside processor can't get them a price upfront/at delivery, but odd they can get the product/process to them in time for production. That's just bull poop. The processor has a packing slip/delivery confirm its just they're accounting dept. can't get the $ together sooner. I always tell the client I'd be happy to help their processor find a new ERP system...