Sage 100

I have a BOM costing question. Customer on SAGE 100 ERP Standard ver. 4.50. All Product Lines and both Raw Materials and Finished Goods are valued using FIFO. They use BOM Production Entry to record Finished Goods. Some Finished Goods have options. When they post a Production Entry with Finished Goods that include one, two or three options, is the FIFO cost of that Finished Good higher than the FIFO cost of the same Finished Good with no options? Therefore, when they go to sell these Finished Goods the proper matching of a higher FIFO cost and the sales price of a Finished Good with three options, might not occur. Right?

That's the downfall to using options. You do not record accurate costs as they come out of one item code. Unless you use lot/serial valuation, that is.

yes, I've been down that road numerous times. With Options, if you want proper costing then Serialization is the only way to control this.

So it comes down to volume of transactions. How much effort will be required to track these FG's by lot number? Good opportunity for a value discussion with client.

I've always liked BOM's with options for Make To Order environment but not for Make to Stock shops. If you have two different items with a single attribute difference, (ie one is red and one is yellow), you really should have two different SKU's. At least that's what I was taught many years ago by a couple guys who were AIPICS certified. @MichaelMcDonald costing question is a perfect example of why this is needed. There are cases where this is not followed. Especially in the garment industry where sizes are involved. However, typically if the same dress is available in two different colors or prints, they are different SKU's. The same color and style in different sizes may be the same SKU.

BOM options works great if kits are used, no production entry, specifying the options during sales order entry. Component inventory is relieved during sales journal update. As Shawn states, options don't work for make to stock (production) BOM.

@DougHiggs Thanks, switching to kits is a good idea and might work well for this customer. I have scheduled a meeting to review with them..

I have several clients exploding kits in SO entry. Works well for them. Just have to tweak the forms to suppress the components. A big issue I run into is that they are unable to interchange parts should they be short but have another compatible item to use. Yet another issue where Sage has a great idea but fails to improve upon it.....

I have a client using B/M and W/O. They have Serial valuation BOM's (currently set as Standard type bills) which consist of multiple Serial valuation subassemblies. They want to have the S/O Packing List print the upper-level BOM with serial # (which it is doing) but they also want the other Serial subassemblies to print as well, with the serial #'s. At first it sounded like we just needed to change those upper-level BOM's to Kit type bills, but doing that prevents us from using Serial valuation. Is there a workaround for this? Also looking to have the W/O Pick Sheet print the allocated subassembly serial #'s, but not sure if that's possible.