Part BOM and Costing Issue

Question

I have an assembly part that is not rolling up correctly and it is causing a huge Production Quantity Variance. Pic 1 shows labor in the manufacturing Routing Tab. It should appear on the (Pic 3) Costed bill of Material Unquiry under Conversion cost. Because it does not, I had to go into the Item location configuration (Pic 2) and add material plus labor. But this is a temp fix. It should be updating as prices get updated in the system after I roll up. Is this perhaps a set up issue?

This item is a sub assembly of another assembly item so this manual cost update will be incorrect it is not tracked and updated accordingly.

There is a PQV of 29K because the cost of this item alone was put in as 195ea. I thought manually updating would wipe out the variance but it has not.

Trixie Amora-Oracle · Accepted Answer

Hello @User_DMW5Z.

Kindly check the following:

1. Confirm item uses Standard Costing

Lists > Accounting > Items > Edit > Accounting tab.

2. Check the Cost Template used by this item:

* Ensure it has the correct Cost Categories for labor
* Ensure Work Centers/Resources used on the routing point to those categories

3. Check the Work Center / Labor Resource:

* It must have a valid Cost Category
* It must have a defined Rate

4. Run a Standard Cost Roll-Up:

5. Remove manual location-level cost overrides once roll-up is functioning.

6. For the PQV that already posted, decide whether to:

* Leave it as is, or
* Re-process the WO if operationally allowed.

Possible Reason:

- Your Routing / Work Center / Cost Category is probably not linked to your Cost Template

- You are not using Standard Costing for this assembly

Hope this clarifies your concern.

Respectfully,

Trixie

Trixie Amora-Oracle · Accepted Answer

Hello @User_DMW5Z,

Have you seen our last comment?

https://community.oracle.com/netsuite/english/discussion/comment/16906270#Comment_16906270

Let us know if the information provided was helpful. 😊

Thank you!