NSC | Assembly Unbuild > Cost of Goods Sold (COGS)

Scenario

User has an assembly unbuild transaction is being used to break down the assembly item "raw bacon" into its components: "cooked bacon" and "bacon grease." These components are subsequently used in the production of finished goods. The issue is that this assembly unbuild is posting a cost impact to the Cost of Goods Sold (COGS) account, which is incorrect because "raw bacon" is not a finished good sold to customers—it’s an intermediate product.

The unbuild transaction should not affect COGS, as COGS is typically associated with the sale of finished goods, not the disassembly of intermediate assemblies. However, in this case, the unbuild process is causing an unexpected debit to the COGS account.