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Production Order - BoM

CD Setting: No BoM At Sales Invoice (BoM at Production Work Order Complete)

1. For a product to be produced, and pass through a Production Order, the product must be established in the Stock Account with a Bill of Materials.
2. Each of the products within the Bill of Materials must have a Standard or Average Cost (depending on the COGS accounting policy used).
3. If Standard Cost is used as an accounting policy, the product (to be produced) will have a Standard Cost which is the accumulation of the Standard Costs, of the Bill of Material products.
4. Progressive buttons from the ribbon: Production Order > Work Order > Production W/O Complete:
a) Places the number of produced products into the Stock Account.
b) Relieves the Stock Account of the Bill of Materials used.

In this scenario, when the produced item goes through Sales Order Processing and is Invoiced, the Bill of Materials are not pulled a second time. The produced item is sold at its selling price, and the COGS recorded are the production costs incurred.