How to Obtain a Costed Bill of Material in NetSuite

Are you struggling to accurately track and manage your company’s inventory and costs? Look no further! In this guide, we will discuss the importance of obtaining a costed bill of material in NetSuite, and provide you with step-by-step instructions to help you improve your inventory management processes. You’ll be a master of cost analysis in no time!

What is NetSuite?

NetSuite is a cloud-based software designed for business management, offering a fully integrated suite of applications for finance, accounting, inventory management, and more. With its centralized platform, companies can efficiently manage their operations, streamline processes, and increase productivity. NetSuite also provides automation for financial processes, real-time data visibility, and informed decision-making.

Additionally, it includes features such as customer relationship management (CRM), e-commerce, and human resources management. Overall, NetSuite is a comprehensive solution suitable for businesses of any size, equipping them with the necessary tools to thrive and succeed.

What is a Costed Bill of Material?

A costed bill of material is an essential document that outlines the various components and expenses involved in manufacturing a product. It provides a detailed breakdown of the materials, labor, and overhead costs necessary to produce each item. This document is crucial in determining the precise cost of production and setting the appropriate selling price. By carefully examining the costed bill of material, businesses can make well-informed decisions regarding pricing, material sourcing, and production process optimization. It enables companies to track expenses, pinpoint areas for cost reduction, and enhance profitability.

Why is a Costed Bill of Material Important?

A costed bill of material is essential as it provides crucial information for manufacturing and inventory management. It plays a vital role in calculating the total cost of producing a product by including all the costs of components and materials required. This allows for accurate pricing, cost estimation, and effective financial planning.

Moreover, a costed bill of material is useful in identifying cost discrepancies, optimizing production processes, and ensuring profitability. In NetSuite, the creation and maintenance of a costed bill of material is crucial for businesses to efficiently manage their manufacturing operations. By utilizing this feature, companies can streamline their production processes, control costs, and make well-informed decisions.

How to Create a Costed Bill of Material in NetSuite?

In this section, we will guide you through the process of creating a costed bill of material in NetSuite. This essential feature helps businesses accurately track the costs associated with producing an item. We will go step-by-step, starting with creating a new item and entering the necessary information. Then, we will show you how to add components to the bill of material and enter their costs. Finally, we will demonstrate how to save and calculate the costed bill of material, providing you with a comprehensive guide to efficiently utilizing this feature in NetSuite.

Step 1: Create a New Item

In NetSuite, the first step in creating a costed bill of material is to create a new item. Follow these steps:

1. Log into NetSuite and go to the Items list.
2. Click on the “New” button to start creating a new item.
3. Enter all necessary details for the item, including its name, description, and type.
4. Specify the preferred vendor for the item and set the cost and price information.
5. Save the item and continue with the next steps in creating the costed bill of material.

Interestingly, the practice of creating item records in business software systems like NetSuite dates back to the 1960s when computerized inventory management first emerged. With the introduction of mainframe computers and the need for more efficient inventory tracking, organizations began implementing systems to manage and create item records, which have now evolved into the advanced solutions we have today.

Step 2: Enter the Bill of Material Information

To enter the bill of material information in NetSuite, follow these steps:

1. Login to your NetSuite account and navigate to the Item record.
2. Click on the “Bill of Materials” tab to access the bill of material information section.
3. Enter the required details such as the name, description, and quantity of the finished product.
4. Add the components needed to create the finished product by clicking on the “Add Component” button.
5. For each component, enter the quantity required and select the appropriate item from the dropdown menu.
6. If necessary, specify any additional information such as the preferred vendor or the lead time for each component.
7. Save the bill of material and ensure that all the costs and quantities are accurately entered.

By following these steps, you can easily enter the Step 2: Bill of Material Information in NetSuite and ensure accurate tracking and management of your inventory.

Step 3: Add Components to the Bill of Material

To add components to the Bill of Material in NetSuite, simply follow these steps:

1. Create a new item in NetSuite.
2. Enter the Bill of Material information for the item.
3. Add the components to the Bill of Material by specifying the quantity needed for each component.
4. Enter the cost of each component.
5. Save the Bill of Material and calculate the total cost.

By following these steps, you can easily complete Step 3 and add components to the Bill of Material in NetSuite, accurately calculating the cost of the final product.

Step 4: Enter the Cost of Each Component

To accurately track the cost of each component in your bill of material in NetSuite, follow these steps:

1. Create a new item in NetSuite.
2. Enter the bill of material information, including the components needed.
3. Add the components to the bill of material, specifying the quantity required.
4. For each component, enter the cost in the designated field.
5. Save the bill of material and let NetSuite calculate the total cost.

By following these steps, you can easily enter the cost of each component in NetSuite’s Costed Bill of Material.

Step 5: Save and Calculate the Costed Bill of Material

To save and calculate the costed bill of material in NetSuite, follow these steps:

1. Create a new item in NetSuite.
2. Enter the bill of material information, including the components and quantities required.
3. Add components to the bill of material by selecting them from the inventory.
4. Enter the cost of each component, considering factors such as purchase price and any additional costs.
5. Save the bill of material and click on the “Calculate” button to automatically calculate the total cost based on the component costs.

How to View and Edit a Costed Bill of Material in NetSuite?

In order to effectively manage your inventory and production processes, it is crucial to have accurate and up-to-date information on the cost of your bill of materials. In this section, we will discuss how to view and edit a costed bill of material in NetSuite. By following these steps, you can ensure that your inventory costs are reflected accurately and make informed decisions for your business. Let’s begin by learning how to view the costed bill of material in NetSuite.

Viewing the Costed Bill of Material

Viewing the costed bill of material in NetSuite is a straightforward process that involves a few simple steps:

1. Log in to your NetSuite account and navigate to the “Lists” menu.
2. Select “Bill of Materials” from the dropdown list.
3. Search for the desired bill of material by entering relevant criteria, such as item name or number.
4. Click on the bill of material from the search results to view its details.
5. Review the components and their associated costs.
6. If needed, make any necessary edits or updates to the bill of material.

By following these steps, you can easily view the costed bill of material in NetSuite and ensure accurate cost calculations for your manufacturing processes.

Editing the Costed Bill of Material

To make changes to a costed bill of material in NetSuite, follow these steps:

1. Access the “Costed Bill of Material” page in NetSuite.
2. Select the specific bill of material that you want to edit.
3. Click on the “Edit” button to modify the bill of material.
4. Update the necessary information, such as adding or removing components, changing quantities, or modifying costs.
5. Carefully review the changes and ensure that all information is accurate.
6. Save the edited bill of material to apply the modifications.

Suggestions for editing the costed bill of material:

• Double-check all changes to avoid any errors in the bill of material.
• Communicate any modifications to the relevant teams or departments.
• Regularly review and update the costed bill of material to reflect any changes in product components or costs.
• Consider using version control to track edits and maintain a history of the bill of material.

How to Use a Costed Bill of Material in NetSuite?

Once you have a costed bill of material in NetSuite, you may be wondering how to use it in your day-to-day operations. In this section, we will explore the different ways you can utilize a costed bill of material in NetSuite. Whether it’s creating a sales order, work order, or purchase order, having a costed bill of material can greatly streamline your processes and provide accurate cost information. Let’s dive into the various ways of using a costed bill of material in NetSuite.

1. Creating a Sales Order with a Costed Bill of Material

To create a sales order with a costed bill of material in NetSuite, follow these steps:

1. Create a new sales order in NetSuite.
2. Enter all required customer and sales order information.
3. Add the costed bill of material to the sales order.
4. Review and confirm the components and cost of the bill of material.
5. Save the sales order and calculate the total cost based on the bill of material.

2. Creating a Work Order with a Costed Bill of Material

To generate a work order with a costed bill of material in NetSuite, simply follow these steps:

1. Create a new work order in NetSuite.
2. Enter all necessary information for the work order, including the customer, the item being produced, and the required quantity.
3. Add the costed bill of material to the work order by selecting the appropriate option from the list.
4. Review the cost of each component in the bill of material and ensure their accuracy.
5. Save the work order and calculate the total cost of the bill of material.

By following these steps, you can easily create a work order with a costed bill of material in NetSuite, streamlining your production processes and ensuring accuracy.

3. Creating a Purchase Order with a Costed Bill of Material

Creating a purchase order with a costed bill of material in NetSuite involves several steps:

1. Create a new purchase order in NetSuite.
2. Select the vendor and enter the necessary details like shipping address and delivery date.
3. Add the costed bill of material to the purchase order.
4. Review the components and quantities listed in the bill of material.
5. Enter the cost of each component based on the vendor’s pricing.
6. Save the purchase order and calculate the total cost of the bill of material.
7. Review the purchase order and make any necessary edits.
8. Submit the purchase order to the vendor.

By following these steps, you can ensure that the purchase order includes a costed bill of material, allowing for accurate tracking of costs and materials throughout the procurement process.