Skip to Content
Menu
This question has been flagged
2 Replies
1883 Views

Hi, 

I have a client on V17e who manufactures products that are used onboard aircraft. As such, they have to meet various standards, and auditors would need full visibility of the components used to manufacture the finished goods. 

My question is around consumables such as glue and threadlocker that are used in the manufacture of the products.  I realise the quantities and value of consumables is not tracked.  The work instructions will tell the assembly operators to use those products, and I have attached the engineering drawings to the BOM's, so from an auditor's perspective, it's clear that they are used. Would there be any reason that I should consider including them in the BOM's?

Thanks

Avatar
Discard
Best Answer

Consumable cost will capture under "Cost Analysis"


Avatar
Discard
Author

Thanks Midhun M M. I do realise that.

Perhaps a better way for me to ask the question is:
What's the use case for including consumables in BOM's?

We implemented the system last year, initially including consumables. After discussing with the finance department, we removed all consumables from the BoMs. Currently, we are not adding consumables to the BoMs.

If there are any additional costs for production, we can post them using the landed cost.

Tax treatment of COGS (direct costs) can be different than the tax treatment of EXPENSES (indirect costs) - for example the USA - this is a question for your client's bookkeeper.

Related Posts Replies Views Activity
1
Jan 25
1815
3
Feb 24
3610
2
Sep 18
6376
1
Nov 17
6386
0
Mar 15
5822