Non-Inventory, Service and Other Charge items assigned as members of an Assembly item are posted as Production Price Variance in the GL Impact of the Assembly Build

   

·         Non-Inventory, Service and Other Charge items were assigned as members of an Assembly item to capture incidental cost related to building of the assembly

·         GL impact posts the related cost of the items to Production Price Variance instead of the assigned Expense Account in their respective item records

·         Inventory Cost Revaluation has been done for the assembly item through either

o        Lists > Accounting > Revalue Standard Cost Inventory when using a Planned Standard Cost; or

o        Transactions > Inventory > Revalue Inventory Cost

 

Explanation and Solution:

 

Non-inventory items (Non-Inventory, Service and Other Charge) do not have a standard cost. The production price variance is generated based on the difference between the assigned value of the non-inventory component item in the cost revaluation of the assembly and the actual cost of the non-inventory item.

 

This scenario is encountered unless the following steps are taken:

 

1.       Edit the item record(s).

2.       Go to the Basic tab.

3.       Assign a value in the Purchase Price field.

4.       Hit Save.

Note: After assigning a Purchase Price the existing Assembly Builds need to be deleted and new ones to be created in case the change is not reflected.