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Additional materials transferred for manufacturing not added to valuation of finished good

I have some materials that differ between each manufacturing run of each of my products. I have BOMS for all the regular raw materials, and have set Backflush Raw Materials based on materials transferred for manufacture in manufacturing settings. This is allowing me to create an extra stock entry for each work order with the additional items. And these get pulled onto the Manufacturing stock entry when completing the work order. But the valuation rate of the finished good only includes the cost of the raw materials on the BOM and operating expenses.

Is there a setting somewhere to make the finished good valuation include the cost of all materials transferred for manufacture? I feel I’m either missing some obvious setting, or misunderstanding the point of backflushing based on transferred materials.

I also notice that the valuation rate for the product is not updated in the item master at all. The stock ledger contains the updated but incomplete value, but I thought the item master would also update. But I’m not seeing that happen.

Any help would be greatly appreciated.
Thank you.

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I’ve added another line to extra costs on my manufacturing stock entry which sums the cost of the additional materials and expenses them to a cost of goods account.

This achieves my goal of including those costs in the valuation of the new finished good, while transferring the items and consuming them achieves the goal of keeping stock quantities up to date.

I am still confused about why the valuation rate in the finished good master doesn’t update. Would be nice for that to be consistent.

Also still wondering if there is a setting somewhere to automatically include the cost of all transferred materials to the valuation of the finished good.

I don’t mind making the extra entry in the extra costs on the stock entry because I’m doing everything through the api, but it would be nice to have a user friendly way of doing this through the UI too.

currently item valuation is at warehouse level, for material issue system fetches warehouse wise item valuation rate from stock ledger. item master is at system level, if item master valuation rate is updated by warehouse wise valuation rate, it will cause other confusion.

1 Like

Thank you for the explanation.