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BOM Product Cost

Can someone help me understand where OB gets some of it's numbers?

For instance, if I look at a BOM for Brite Beer A the Unit price for Green Beer A is $70.562 however in the Brite Beer BOM window's lower right hand corner is a field called Product Price and the figure in there is $78.804. (Batch size is .9 to account for loss from Green to Brite.)

Is one a weighted or moving average? How is the Product Price calculated?

Also, if I then look at the BOM Cost Variance by Month there are two different figures of $77.91 for the BOM Cost and $79.91 for the average cost.

We are trying to get a solid understanding of our true COGS so any insight would be helpful.

4 comments

  • 1
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    Rhinegeist Standard Support User

    I'm literally trying to figure this out as we speak.

     

    OBeer - what's the deal?

     

     

     

     

    -Jeremy

  • 1
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    Mary Beth Brandt

    Jeremy,

     

    Here is the answer I got after putting in a ticket request. I hope it helps.

     

    "The price list on the BOM actually just shows you a price for each component, it does not actually change prices or apply to Production Orders. It will not post any values or affect your costs or change your reports or Balance Sheet. It is there to show an estimated pricing for future costs. Because of this, it doesn't really matter which price list you choose. The Production Order is the document that will take and post the actual costs (using Moving Average of the components).

    Indented Costed BOM, located under Production > Production Reports > Orchestrated Reports > Indented Costed BOM looks at every step and what it should have cost if you went from beginning to end, meaning you started at Wort and went all the case to the packaged product."

     

    Mary Beth

  • 1
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    Rhinegeist Standard Support User

    Mary Beth,

     

    Thank you - this is great! Getting much closer to what I'm looking for :-)

     

     

    Cheers!

     

     

    Jeremy

  • 0
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    Joel DiCandilo

    Mary Beth,

    Thank you for recommending this report.

    Cheers

    jad

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