I am working on setting up a few items that need to be assembled. I just noticed that on my GL printout, that the "prorate" and "additional costs" do not have G/L numbers associated with them. I have gone back into Edit Assembled items, but can not find where I can set this up. Should I be able to set them to a "labour cost" account?

Hi KEMLTD,

The GL account that should be printed for the additional costs of an assembly is the 'Assembly Cost Credit' account, which is defined on the Control Account assigned to the Master Item. Check out the particular account set to see if this is set up.

Also, what version of Inventory is installed? If you are using the latest 8.0B, it may be this is a symptom of a problem we have found and fixed (but not yet released) in sending these cost transactions from assemblies to GL.

Hi KEMLTD: The additional costs in a BOM are credited to the Assembly Cost Clearing. Therefore, by using a Labour expense account shouldn't be used. The way I have set this up for clients is to use the Assembly Cost Clearing account as an account where the total capitalized cost of an assembled item will be accumulated. You can either use this account as an 'offset' in COGS, or you can reallocate the credit balance to various cost accounts, including labour costs. The end result will be that the cost accounts (or COGS section of the income statement) will be reduced, and then when the item is sold, the total cost of the item will be charged to your COGS account.

Hope this helps.

Regards,
Lars Glimhagen

Sometimes it's so simple! I did not have the 'Assembly Cost Credit' account defined. Now it should work. I'm going to look closer at Lars reply as I would like to include labour accounts.

Thanks to both of you for your replies,