Accounting, Payroll & Pension Issues/Inventory

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Question
We are a very small company (6) in truck controls. My question is how do we substitute parts? We use a certain kind of part in a BOM, but sometime we run out and substitute another part or different brand. What is the right way to show the substition through out the system (BOM to inventory)?
p.s. We use Parts & Vendors software


Answer
I'm not familar with that software.

Is there a space in the BOM that allows to identify for substitutions? But my guess is that you can't automate that and would have to go back and make the inventory adjustment for the different part.

I don't know why a different brand should make a diffence. Wouldn't you call the part the same regardless of source, with regards to the BOM?

Good luck

Accounting, Payroll & Pension Issues

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Ed McFarland

Expertise

Over 20 years of experience as a CFO, Controller and now Consultant to small businesses. Dealt with 401k, 403b, deferred comp plans, key man issues, disablity, business continuation plans, HSA plans and other benefit issues.

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Management experience in Financial Services, Manufacturing, Media, Logistics. Taught graduate and undergraduate business courses.

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MBA

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