Disassembly: cost and accounting

Steps

1. The finished goods leave at their stock cost (weighted average, FIFO layers or standard - whatever your costing method gives).
2. That cost is shared over the BOM's components by cost share: each component's BOM quantity × its current cost (by quantity when no component has a cost). E.g. a bicycle at 12,000 with a frame 6,000, two wheels 1,500 each and a seat 1,000 → 60%, 30%, 10%.
3. Full: the components take the whole cost - frame 7,200, wheels 3,600, seat 1,200. Partial: each recovered component takes its share × the part recovered; what is not recovered is written off to stock adjustments (e.g. frame and one wheel: 7,200 + 1,800 recovered, 3,000 written off).
4. One journal: Dr each component's inventory account · Dr stock adjustments (not recovered) / Cr the finished good's inventory account. Standard costing: components come in at standard, the difference to production variances.
5. Weighted average: each component's average is updated by what came in; FIFO: a new cost layer.
6. Components put into a warehouse of another branch are booked to that branch's inventory; the finished good's credit stays with its own branch.

Good to know

• The disassembly page shows the cost, each component's share and value, the stock movements, the journal and the audit trail.