About Setting Up an Override Bill of Materials
If you produce finished goods and want to override the standard bill of materials by location, use the IN Bill of Materials Overrides form to set up an override bill of materials for each applicable location / finished good.
An override bill of materials identifies all of raw materials (components) that are needed to produce one unit of the finished good, along with the locations from which the material will be pulled and the quantities needed of each material. When you "produce" a unit of a finished good, the system uses the override bill of materials to determine what locations to relieve of the raw materials and how much of each raw material to relieve. Additionally, if you selected the Update Average Cost of Material with Sum of Component Costs check box for the finished good in the IN Location Materials form, the system also updates the finished good's average unit cost with the sum of the component costs.
A standard bill of materials is set up by location group and assumes all of the raw materials for a finished good will come from the same location as the finished good. With an override bill of materials, you can:
have all the raw materials come from the same location, but have that location differ from the location specified for the finished good
have all the raw materials come from different locations
have the raw materials come from the same location as the finished good, but have a different composition of the raw materials for a specific location within a location group that differs from the standard bill of materials for that location group.
