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https://issues.apache.org/jira/browse/OFBIZ-5420?page=com.atlassian.jira.plugin.system.issuetabpanels:comment-tabpanel&focusedCommentId=13878538#comment-13878538
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Pierre Smits commented on OFBIZ-5420:
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Christian,

Let me explain something about manufacturing, cost price calculation and 
commercial pricing. 
In manufacturing materials and other resources are used to generate the end 
product. End products can be components of other end products.
The materials used and other resources applied come at a price. For the 
materials used the determining factor is the purchase price, coming from a (in 
following order: the umbrella contract, the order, the invoice), for other 
resources the determing factor is the purchase price, depreciation and direct 
overhead, etc.

In OFBiz you can set all these.

For cost price calculation you can use the integrated simulation tool in the 
manufacturing component. If you do a simulation, you can correct the BoM and 
cost prices (in the Catalog Component, on the Cost tab of the product) to get 
to a refinement on the (estimated) cost price. If you don't know the purchase 
price of a material, you can set the estimated material price (and others). 

When you do purchase orders and deliveries with OFBiz, the actual price paid is 
registered and this should feed into the cost price settings of the material. 
(making it more realistic).

With regards to commercial pricing, the cost price is only one contributing 
factor for its determination. The cost price should never be shown on orders 
(for obvious reasons). The commercial price of an end product (which you sell) 
is determined by more factors, among which competitors prices, emotions, etc. 
Setting the standard commercial price variants of an product is done in the 
Price tab of a product, and can change due price and promotion rules on orders. 
That is why there is no direct link between the commercial price and the cost 
price (actual or otherwise) in the OrderMgt component.

Again, BoMs are used in manufacturing and engineering. Not for ordering. But it 
can be that you want to sell the components of a (assembly) end product as 
well. For instance as spare parts and such. In that case, the components need 
to have a commercial price as well. For that reason, the components are shown 
as associated products in the Order component. And in the above case of selling 
the components as spares etc, the sum of the indiviual components can lead to a 
high cost price for your customer.

I trust the above will help you (and the rest of the community) to determine if 
this issue is still valid and your solution (patches) adds value to the feature 
set of OFBiz. If you feel that the comments supplied on the subject convince 
you that it is not, please close the issue with the appropriate resolvement 
setting.

Regards,

Pierre



> Add ability to separately price BOM elements for orders
> -------------------------------------------------------
>
>                 Key: OFBIZ-5420
>                 URL: https://issues.apache.org/jira/browse/OFBIZ-5420
>             Project: OFBiz
>          Issue Type: Improvement
>    Affects Versions: SVN trunk
>            Reporter: Christian Carlow
>         Attachments: OFBIZ-5420-1.patch, OFBIZ-5420-2.patch, OFBIZ-5420.patch
>
>
> I have a scenario where a company individually prices BOM elements of 
> assembled products ordered.  So if an item is manufactured from 2 component 
> products, the company needs to be able to specify prices for both of the 
> components to made up the total parent product cost.



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