Sage 100

My customer is on 2016.3 - we want to use WO to build a total of 700 pieces of an item which is BOM. This item is sent to a third party to assemble and they return it to us. Our cost of the item is: - BOM materials - Outside assembly cost We do not add any other costs Initially, we created a WO for 700 items (which was the total build over time), released all the material. We received in some assembly costs for the first batch of 100 via PO (which is linked to WO). The issue/concern is that when we complete the 100 the cost is too low because WO takes the total material costs for 700 items plus the assembly cost received so far and divides that by 700 to come up with an average cost for 700 pieces. Is there a different way we should set this up than what we've initially done? I'm thinking either: - Create separate WO for each batch that is finished - Or more likely only release the quantity of material needed for what has been assembled - in this case release material for only 100 items when the assembly bill is for 100. This seems like the solution. Or have I missed something in WO setup. The user is on Standard Cost so the actual cost of the item built isn't changing but it throws a MFG variance for any difference between STD - AVG. I tried initially to convince the customer to just use BOM Production Entry but they wanted to tie in the PO for the outside assembler. Other than some fine tuning this looks like it will work and I'm just wondering if there's something I'm missing in the setup.

They could tie in the labor via a BOM. Create a part number for labor and pull it in after receiving it, Could even create a lot number for that batch, create a misc item code for the labor..... If there process is that simple, then this would be a simple solution. Partials are a PITA.

You could try changing the material issue to be backflush. That way, when they complete 100, it should just pull materials for the 100 plus the outside processing cost to date. At least in theory.

Thanks - good ideas. I will try the backflush. Production Entry / BOM is my first suggestion. I this case the customer was adamant about tying a PO to a WO which the WO will allow for. Also, for anyone who stumbles across this question in the future - I found this Sage KB which seems to explain how the different costs are computed based on how the WO is setup -- https://goo.gl/W361pY

I was going to mention the cost completion methods too but it's not easy to explain in a sentence or two.

Thank you - this pointed me in the exact direction that i needed to go. Attached are two images that I sent to the customer to illustrate what I think needs to change on their processing. Previously they were automatically issuing all materials when the WO released. That probably works fine so long as you don't have partials but these folks did. They use WO for a very simple build of a BOM where the components on the BOM are put into a box and sent to a third party who then assembles them and ships them back. Just getting started with this process so I don't now if there will be other issues with inventory from using backflush. The company primarily sells kits which explode on SO and then they pull the major components from inventory (which are not the same components that are put onto the printed circuit boards being built outside). Attaching these images for future reference