@Paul Cochrane,
@Gregory Alford's idea is definitely an interesting one and it seems to be working well for them. I would like to point out that Item Charges are meant specifically for the purpose of adding additional costs to inventory. If I were designing this process, I would do the following:
1. Identify the work center for the subcontractor and their process, with the per unit processing cost (no landed costs).
2. This will create the PO for their per unit processing fee.
3. If the freight charges are added by the same vendor, simply update the PO an Item Charge line. The beauty of the item charges is that it allows you to apply costs from any Vendor to the receipt of that inventory, increasing the cost. If the freight is charged by a separate Vendor, either create a new PO to track or simply process a purchase invoice when it is received with an item charge.
4. Use the application process on the item charge to apply to the receipt of inventory.
This will separate the manufacturing process and costs from the landed costs. Good luck!
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Amanda Mayer
New View Strategies
"The NAV & BC training and process experts"
Milwaukee WI
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Original Message:
Sent: Dec 04, 2019 11:45 AM
From: Paul Cochrane
Subject: #subcontracting charges
Hi Amanda,
We use Average Cost.
Also, we would like to add the per unit cost from the packer and the freight to get a solid landed cost.
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[Paul] [Cochrane]
[IT Program Manager]
[Columbus Vegetable Oils]
[DesPlaines] [IL]
Original Message:
Sent: Dec 04, 2019 08:22 AM
From: Amanda Mayer
Subject: #subcontracting charges
Paul,
To clarify your question, you are looking to understand how to add the cost of transportation for the co-packed items back to your facility? What is your costing method?
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Amanda Mayer
New View Strategies
"The NAV & BC training and process experts"
Milwaukee WI
Original Message:
Sent: Dec 03, 2019 11:03 AM
From: Paul Cochrane
Subject: #subcontracting charges
We occasionally use NAV Subcontracting functionality for an offsite packer.
I was wondering what the best practice(s) is/are for adding the co-packing charges to the cost of the finished good. We send them raw components,
they pack them into a finished good, and then we pick up the finished good from them, and sell the finished good. I wanted to make sure we are
capturing the costs in the best way. We are booking transportation cost to a GL account, but I wanted to get the best CoGs possible.
Thanks
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[Paul] [Cochrane]
[IT Program Manager]
[Columbus Vegetable Oils]
[DesPlaines] [IL]
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