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Reverse Bill of Materials

Use Reverse Bill of Materials if you made a mistake and built a BOM you did not intend to build, or if a built item needs to be deconstructed into its component parts.

Note: This option does not reverse a specific build so it will need the user to enter the specific traceable number details for a traceable built item and any traceable components.

Reversing a BOM Build will use the current costs at the time of reversing, so the issue cost will abide by the cost method of the built item. Receipt costs of each component will default to the Average Buying Price of the item but can be overridden.

If nominal integration is switched on in Stock Control, any discrepancy between the issue cost and the total receipt cost will be posted to Cost Variance. Before using this screen, the Reverse Build Cost Variance nominal account must be set in Cim200 Settings. Any cost variance will be posted to this account.

You can reverse build one item at a time.

You can reverse build an item if:

  • The built item has a Bill of Material.
  • The built item is Active.
  • You have sufficient free stock of the built item

Outcomes

  • Built item stock is reduced by the build quantity in the location specified.
  • Component stock is increased by the build quantity in the location specified.

Note: Stock is added to the bottom of the stock pile, not the top. It is not put back following FIFO rules.

  • Selected Traceable numbers to issue are updated to indicate that they have been reversed and may not be issued. Component traceable numbers become stock, free to be allocated or issued elsewhere.
  • If Stock Control was set to produce nominal transactions, reverse nominal transactions are made to match the issue cost of the Built item and the receipt costs of the component items.
  • If nominal integration is switched on in Stock Control, any Cost Variance is posted to the Nominal Ledger.

Reverse BOM Build

Open: Bill of Materials > Processing > Reverse Bill of Material

1. Select the Item Code.

  • The following information is displayed automatically:

The Item Name and Unit Cost information.

 

2. In the Reverse Build Options section, record the details of each reversal.

 

Reference : The Transaction Reference. This reference will be recorded in Stock History and Nominal Ledger postings (if applicable).

Reversal Date : The Transaction Date. This date will be used for Stock History and Nominal Ledger postings (if applicable). It will default to the current date.

Select Batch/Serial Numbers : The Traceable number(s) selected for issue in the reversal. Use this button to make the selection.

Second Reference : The Transaction 2nd Reference. This reference will be recorded in Stock History.

Unit Cost : The current Unit Cost of the Built item, based on Average Buying Price, or Standard Cost if the item uses standard cost method.

Warehouse/Bin : The Warehouse and Bin location to issue stock to. Once selected click Yes to automatically set this as the receipt location for all component stock items. This only applies to component items for which the chosen Warehouse is a valid location.

Qty to Reverse : The quantity of the built item to be deconstructed.

Qty Available : The Free Stock of the built item in the selected location.

 

In the Components section, record the details of each stock addition.

 

Seq. : The sequence number of the component within the Bill of Materials.

Code : The BOM component Item Code. This is the item that will be returned to stock.

Description : The BOM component Item Name.

Quantity : The quantity of BOM component items which will be returned to stock. This defaults to the quantity of component on the Bill of Material multiplied by the Quantity To Reverse, but can be amended to a different quantity.

Reference : The Transaction 2nd Reference. This reference will be recorded in Stock History.

Unit : The component unit of measure set on the Bill of Materials. If this is different to the item’s stock unit of measure the quantity to receive will be multiplied according to the specified Conversion Ratio.

Unit Cost : The unit cost to use for the component receipt. It defaults to the current Unit Cost of the component item, based on Average Buying Price, or Standard Cost if the item uses standard cost method. The cost can be changed.

Avg. Cost : The current Unit Cost of the component item, based on Average Buying Price. This may not be the Unit Cost actually used for the component receipt, if the component is not set to use Average cost method.

Warehouse : The Warehouse location that component stock will be received into. The location can be copied from the Built item location but can be changed.

Bin Name : The Bin location that component stock will be received into. The location can be copied from the Built item location but can be changed.

Select Batch/Serial Numbers : Select a traceable component line then use this button to assign the traceable number(s) and quantities to receive into stock. The total traceable quantity set must equal the total quantity of the component in order to confirm the Reverse.

Cost Variance : This is the value of the variance between the issue value of the built item and the total receipt value of the components. This value will be used as a balancing figure for Nominal Ledger postings (if applicable).

 

3. Reverse the build by clicking Confirm.

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