RSMUS.comWhen it comes to manufacturing and inventory management in NetSuite, there’s a hidden gem many users overlook: the Costed Bill of Materials (BOM) SuiteApp. Unlike standard cost accounting tools, this SuiteApp provides a detailed cost breakdown of assembly items, helping businesses strengthen pricing strategies, improve budgeting, and boost profitability.
What Is a Costed Bill of Materials?
A Costed Bill of Materials (BOM) lists all components, materials, and labor needed to manufacture a product, along with their associated costs. By using a costed BOM, businesses can:
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Track and manage production expenses
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Set competitive and profitable pricing strategies
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Improve budgeting and forecasting accuracy
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Make informed decisions about production efficiency
What Is the Costed Bill of Materials SuiteApp?
The Costed Bill of Materials SuiteApp calculates the total cost of an assembly by using:
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Bill of materials revisions
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Manufacturing routings
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Cost templates
Since it’s a separate SuiteApp, many NetSuite users may not realize it exists. However, once installed, it becomes a powerful tool for gaining deeper insight into production costs.
Key Features of the SuiteApp
Here’s what makes the Costed Bill of Materials SuiteApp so valuable:
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Detailed Cost Breakdown – Get a comprehensive breakdown of an assembly item, including bills of materials, operations, and cost types.
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Component Cost Analysis – Drill into the costs of individual components, from material costs to conversion costs.
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Cost Estimation – Estimate potential manufacturing costs based on costing methods, purchase prices, and default item prices.
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Engineering and Costing – Incorporate cost breakdowns into product engineering and costing processes.
Why Is This SuiteApp Overlooked?
Many NetSuite users rely solely on standard cost accounting reports, unaware that the Costed Bill of Materials SuiteApp requires a separate installation. Because it’s not part of NetSuite’s core cost management system, its advanced features often go unused.
For companies dealing with complex assemblies or detailed manufacturing routings, this SuiteApp provides insights that standard tools simply can’t match.
How to Use the Costed Bill of Materials SuiteApp
To create a costed bill of materials in NetSuite:
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Install the SuiteApp: Costed Bill of Materials
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Navigate to Reports: Reports > Cost Accounting > Costed Bill of Materials
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Select Subsidiary: Choose the subsidiary for the bill of materials
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Pick Assembly Item: Select the assembly item you want to analyze
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Choose Location: View site-specific data for your selected location
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Select Revision and Date: Define the BOM revision and effective date
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Set Display Options: Display results by date or by revision
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Include Routing Costs: Add manufacturing routing if applicable
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Enter Build Quantity: Generate cost estimates for different production volumes
Once submitted, the SuiteApp generates detailed cost calculations in multiple subtabs, allowing for further analysis and decision-making.
Key Takeaways
The Costed Bill of Materials SuiteApp is one of NetSuite’s best-kept secrets. Though often overlooked, it delivers invaluable cost analysis for manufacturers. Once installed, it reveals actionable insights into cost structures, empowering businesses to make smarter financial decisions.
With the expertise of RSM’s manufacturing and distribution team, you can unlock the full potential of this SuiteApp and optimize profitability. If your business manages complex assemblies, this tool can provide the clarity needed to drive efficiency and growth.
Related Resources
- More in depth detail of the SuiteApp: Costed Bill of Materials SuiteApp
- Standard Costing in NetSuite
- Unlocking Efficiency: What’s New in NetSuite 2024.2 for Manufacturing, Supply Chain, and Distribution
Get in touch with our team today to discover how we can help you leverage this tool for your business goals.
Mindy Tan
Mindy Tan is a NetSuite consultant focusing on the industrials and consumer products industries. With her experience in inventory and security, she has contributed to multiple client engagements, collaborating with organizations of different scales by completing assessments, implementations, and optimizations.
