hi
we are implementing manufacturing for a gas industry using standard baan5, the final produt wich is oxygen needs electricity and air as a raw material. so how can we include electricity in the bill of material [as it is not a concrete item that can be issued from a warehouse] the client consumes electricity from a governemental company and he pays the cost of it every month based on his consumption

NB a cost item cant be added in the bill of material

Item type = Cost

You can't use a cost item in BOM.

Hi there,

I am interested how you solve your issue. We are having a similar issue as yours but it is a digitzed software where you activate the feature via digitized key.

Any feedback from you will be much appreciated.

I can be reached via e-mail wendylim@xtra.co.nz

Hi,

I am not sure how important it is to have the electricity show up on the BOM, or if you are more interrested in getting the cost of the electricity added to the total std cost of your end item.

If that is the case, I think you could use the Item Surcharges. I would think that they should be able to estimate the average electricity cost per item, and than add that in as a Item Surcharge. This will be added into the end items std cost price.

They can then maybe on a 6 month basis adjust the item surcharge percentage.

Hope this helps.
Thanks,
MMS

Hi,

What MMS is saying seems to be very much logical. Electricity is an utlity and should be viewed as Utility. The cost of the same should be taken as surcharges.

Rgds

Although onorthodox, I am not sure why electricity could not be considered a 'material'.
I think the problem lies with quantization. How much electricity is added to the process? Is it a set number of Watts or is there a continuous flow out of which some is used for the process.
Also important is whether or not the price of the end product is related to the price of electricity.
Is electricity for production purchased separate from the electricity of the plant overhead?

Let's not forget that water, although a utility and much like electricity in its nature, would not be frowned upon as part of a recipe.

Let us know how you proceed, dinamm. I find this verree eenteresteeng.

Hi again,

The main reason I would personally setup electricity as a surcharge would be to avoid al warehousing and purchasing steps. And these would be steps done for a non physical item, which can create confusion in itself. This off course is just my own personal opinion. But having it as a surcharge you still accomplish the fact of having the cost roll into the standard cost price, and saves alot of work. Finance can just book the electricity bill once a month.

Good luck,
MMS001