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Valuation with same itemcode and recursive BOM

We make robotic machines which usually have 1000s of components(itemcodes).

  • Each component undergoes different operations(sometimes 10).
  • The Operations are sometimes done inhouse or subcontracted.
  • The sequence of operations is not always fixed.

We cannot create different itemcodes for same component undergoing different subcontract operation for following reasons

  • Unwieldy to handle too many itemcodes
  • Say if we name it as FGG-020-140-245-DN for drilling the component FGG-020-140-245. Though itemcode is same, we could still endup with different prices for different pieces because the prior operation could have been different for each piece. Valuation goes haywire.
  • BOM is a problem too as we have to create a BOM for every subcontract operation with items for every combination of prior operations.

Maintaining same itemcode for different subcontract operation and a recursive BOM eliminates many issues but valuation(different price for different pieces) is still a problem.

Could someone pls suggest a way forward for the above requirement.

Hi erphand,

Welcome to ERPNext and here’s hoping you have a great experience with ERPNext and here on the community.

Have you thought of using virtual warehouses? The context sensitivity of the Item in a Warehouse indicates the stage at which the item is at.

For instance, let’s say you have ItemA that needs to go through Forging, Milling and Drilling (and let’s say in that order).

So, ItemA in the Forging warehouse means that it is being forged. ItemA in Milling warehouse means that it is being milled after forging and so on.

ERPNext anyways supports warehouse level valuation, so you should not have a problem with that.

If you have complex routings of different items and have flexibility in the sequence of operations, it becomes a lot more complicated. It anyways is complicated and can perhaps be solved to a certain extent by using generic warehouses called Process1, Process2, Process3, and so on.

Hope this helps.

Thanks

Jay

Hi Jay,

Glad to be part of the community and Thanks for your valuable input.

Seperate Warehouses for the different operations is a good idea. Helps us to solve the problem for all operations in sequence. Costing wrt flexible routing is the problem area.

Wonder how costing wrt flexible routing and recursive BOM is handled in other ERPs.