All raw materials have a cost price on the item card, which changes from time to time, as new materials are received.

These new cost prices are not automatically updated on every recipe (BOM) where those items are used.

To update all recipes, there is a maintenance routine in Production module, which will update all Input Item cost prices, and recalculate the cost of the out item

The Cost of In-Items Field contains the sum of the Input Cost of the Input Values (W-cost + (I-cost x In Qty).

If the assembled Item is a Stocked Item, you should transfer this value to the Cost Price field on the "Cost" card of the Item Record for the assembled Item (Out Item), either manually or using the following maintenance function:

Production>>Routine>>Maintenance

We recommend that you run a Recipe Cost Comparison Report (Production>>Reports) before running this routine - in order to see the differences between the relevant Recipe and the details in the Item register, thus ensuring the Gross Margin calculations are correct when you sell the Assembled Item.

The Value of Out -Items field contains the sum of the costs of the Output Items plus any time/labour costs.

HansaWorld Support Team