# Best way to obtain manufactured part cost in BAQ

Hello,
I am trying to understand the relationship between the cost of a part and the “BOM cost” of that part. As I understand it, the BOM cost report runs a routine that sums the costs (material, labor, burden etc.) of the constituent parts of a given assembly. However, if you query that assembly in a BAQ and its costs straight from the PartCost table, there are associated costs but they do not match the BOM cost obtained by running the BOM cost report.
Now, I know that the costs of purchased parts are updated automatically (the avg cost I mean, which is what we use for everything) upon receiving a PO at a given price. So in the case of a manufactured part/assembly would its cost not update in relation with changes in the costs of its constituents? Or more importantly, is there a “best practice” for obtaining the cost of a manufactured part based on the current cost of constituent materials and labor in a BAQ?

Thanks

Can you run through an example of what you are seeing? And how much you are off by? When I grab a part and check the costs, it comes out to within \$0.01 of what I calculate manually. It’s not exact, but it’s pretty close.

When I run a BOM cost report on a part, the results show:
Material cost - 37.91
Labor Cost - 112.35
Burden Cost - 102.69
Mtl Burden Cost - .997
Total Cost - 253.95
When I query the cost of the same part using a BAQ all costs are 0 except for material and that cost is 187.32.
Specifically that is from querying the PartCost table.

which material cost is populated? Ave, std or last?

All of them, which leads me to believe that this cost has nothing to do with the cost of constituent materials; it’s simply the cost someone entered manually at some point. The question remains then, how can I obtain a cost based on constituent parts using a BAQ.

what type of material is it? Does your BOM have less than one called out by any chance? Does your BAQ multiply out the quantities required from the parent part?

Sorry if these are basic questions, I just don’t know how you have things set up, so I have to rule out some of these things.

The average cost should do that, as well as the BOM cost report, if you have things set up correctly.

It is a manufactured part, containing several raw material parts as well as multiple operations.

I don’t understand what you mean by “less than one called out”. The part in question is the parent part so I want the cost of precisely 1 unit, and each of it’s “children” (I have been referring to these as constituents) have quantities greater than 0 assigned.

No, the BAQ does not multiply any quantities, it simply queries the cost of the parent part. It does not query the children parts or their costs. I do not know how to do this, but suspect it may be the only way to accomplish the task at hand.

If I have a steel beam, I call out some of it to make a part, because I cut more than one part out of the beam. etc.

ok, so you are suspecting the average cost is not correct. This can happen for a lot of reason, usually because operations and issuance are done in the wrong time frame in relation to receipts to inventory. I generally don’t trust the average cost on manufactured parts because our companies transaction hygiene is horrible. We are make to order so we can get away with that because we don’t use the cost in the system for manufactured parts, it’s actual from the job. I do a cost rollup to get costs into standard cost for estimating purposes. But that is a snapshot of when you do the rollup, so you have to do another one if you need to see the most up to date costs.

To do an indented BOM query, you will need to do a CTE query. The user guide give a pretty good example of making a BOM query to go down as many levels as needed. Once you get that working, you can link in your costs and the material level and sum things up. It’s not a trivial query, I personally think CTE’s are quite confusing. Also, this will only get you one BOM at time, basically like view costs in the method tracker.

https://epicweb.epicor.com/Education/OnlineHelpFeatureSummary/Epicor%20ERP%2010/10.2.100/Help/enu/Standard/Tools_BAQs/CaseStudy.CTE.html

When you run a BOM Cost Report, it’s sort of like simulating a cost roll for that part. So if the material (component), resource grp rates or methods have changed since last time the mfg part’s cost was loaded then the BOM cost report will have a different cost.

if your using avg costing then a part will only have a cost if its been manually entered or a transaction has occurred when it affect inventory, ie a purchase receipt or job completion. A subassembly of a job hit the WIP accounts not inventory.

maybe investigate setting your manufactured parts to use std costing and your purchased parts average costing. That way when you process std cost rollup you will have a cost for your subassemblies??

That is true. You can still do a cost rollup to calculate and populate the standard cost for informational purposes. This is handy in a lot of areas. It won’t affect accounting if your parts are set to average costing (someone correct me if I’m wrong on that one).