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Reworking an obsolete inventory item to a different inventory item, capturing the rework costs

edited Nov 28, 2019 5:41PM in Accounting / ERP

Through our engineering change process we are finding a not infrequent need to modify/rework existing fabricated items to new part numbers, and would like to capture that rework cost in the cost of the new inventory item.  Our consultant has said we need to make the new item an Assembly, rather than an inventory item.  That seems clumsy to us.  Once the obsolete material is reworked into the new part number, we will always purchase the new item as an individual part. 

Surely others have the need to rework one inventory item to another.  How do you do it? 

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