In the BOM screen when we enter our assemblies, there are two fields in question:

(1) Cost to Prorate
(2) Additional Cost

We have been using the system for years, and discovered that most of our products don't even use those fields, but several do. (Employee changes, etc). How do they affect the Cost of Goods sold? Or do they?

Thanks,

Hi Rich,

These are the descriptions of these two Cost settings, from the Help file for Add Bills of Material:

Cost to Prorate:
You can enter any cost here which is associated with this master item, but should not be prorated across the component items. This cost field may include all extra costs for the assembly or packaging of this master item; or it may only include certain flat costs that are independent of the items themselves.

This cost is generally a flat cost, and may be associated with the fixed cost of having an employee put together a package of several component items together, for example. It is not usually a cost associated with the individual supplies that go in to the master item.

Additional Cost:
If there are additional costs involved in selling each master item (due to re-packaging or assembly, for example), then you may want to enter that cost here so that it will be accumulated for each master item built. If you would rather assign this Bill of Material a single cost which would be applied according to the build of the master item itself (according to the item’s category costing rules), you would leave this field at zero dollars and instead enter the cost in the Cost to prorate field above.

Thank you!