BOM cost VS item cost

ERPNext
1

please clarify how ERP NEXT wants us to use the following:

  1. BOM for Item-A shows a cost to manufacture Item-A.
  2. A sales quotation CANNOT reference the BOM cost, instead it looks at the
    selling price list for Item-A
  3. Are we supposed to manually REPLACE the selling price each time BOM cost
    changes?
2

Ever tried Price Lists?

3

Yes that is what I meant in point no. 2
this is considered manual updating. imagine updating 100’s of prices manually.
I feel the BOM calculated cost must auto update the pricelist?

4

BOM cost and Sales Price are unrelated in ERPNext. To be honest, I haven’t seen any company implementing a direct relation on sales prices from their BOM costs on any erp.

5

In manufacturing you do that for every single item. so, unless I understand BOM wrong,
there should be a direct link ALWAYS.
Hence the original topic question.

In manufacturing you have to quote the customer before he places the order.
the only way to quote a customer is with building the BOM. Do you see where this is going?

6

Do you mean that a company sells each and every Item manufactured on a simple margin rate? For all of their products? What if the items in stock manufactured last month and the manuf.costs/direct, indirect costs are updated.
Makes no sense… There is always human intervention there. Unless, you are an FMCG company which is not producing anything but box moving…

7

We sell thousands of items manufactured.
when raw material prices go up or down, the selling price must change.
so, I must manually change thousands of parts 3 to four times a year as the raw material price fluctuates.
this is considered standard. Or how would you suggest handling this situation?

8

If the price of the item is calculated on market values such as London Metals Exchange, you need to incorporate them with a custom design and develop the necessary updating code. In case of internal price change calculations, there are endless limitations:

  1. BOM cost calculation uses a limited source of data
  2. BOM updates should be triggered in your case
  3. Would you like to keep a steady margin rate over costs of all manufactured items?
    In any case this calls for a custom development if you are getting the business process correcly.
9

Hi,

You may set the sales pricing rule margin based, let’s say you want 20% minimum margin on the cost. You can set the pricing rule for that, and the system will automatically adjust the pricing based on the cost of the product.

Thanks,

Divyesh M.

1 Like
10

Surely, that is one of the ways but not 100% dependable. BOM costing scheme has limitations. Unless you find a solution or approach to that, the dynamic condition you set will work but calculate based on data at the time of sales. You will not know if it reflects all the input updates.

11

YES. it seems that customising is the ideal route to go.

will it be difficult to do the following with client script:

when opening an ITEM.
display
- the linked BOM’S COST
- the linked selling price list price
- add a button that replaces the sell price with the BOM’S COST + certain %

this way we have a quick reference if the selling price is to low or still ok for selling