Use this function to update system generated cost parameters to be used in different cost calculations. Please note that the cost parameters are defined per site.
The system generated cost parameters are as follows:
| Parameter Description | Parameter Value | System Effects/Notes |
| Use SO start date when calculate variance bookings. | No | The parameter is used in shop order cost variance logic. If set to No then system will use the actual close date when calculating variances. |
| Use Inventory Scrap Factor for Purchased Parts | Yes | Used in Cost Rollup calculation. |
| Use Inventory Scrap Factor for Manufactured Parts | Yes | Used in Cost Rollup calculation. |
| ROI period limit | 100 (years) | Limit user input (disable heavy calculations). (Kaizen Cost Calculation). |
| ROI period | 3 (Years) | Used in ROI calclulations. (Kaizen Cost Calculation). |
| Reinvestment rate (in percentage) | 10 (%) | Used in ROI (MIRR) calculations. (Kaizen Cost Calculation). |
| Number of Products | 0 | Used in ABC calculation. You can let the system calculate values for you by right-clicking and selecting Count No of Products. |
| Number of Parts | 0 | Used in ABC calculation. You can let the system calculate values for you by right-clicking and selecting Count No of Parts. |
| Include components marked not consumed in Cost Rollup. | No | If set to Yes then system will include product structure components marked not consumed in Cost Rollup. Note this will lead to shop order variance if used in Cost Set 1 because not consumed parts are not included in shop order costs by definition. |
| Financial rate (in percentage) | 10 (%) | Used in ROI calculations. (Kaizen Cost Calculation). |
| Enable zero cost warning if operation cost is undefinied. | No | When set to Yes, the system will generate a warning about the non defined operation costs when creating shop orders. |
| Copy Estimated Material Cost from Inventory Part | Yes | Default state for Flag 'Copy Estimated Material Cost from Inventory Part'. The value will be selected by default in All Levels Part Cost Calculation, One Level Part Cost Calculation and All Parts Cost Calculation. |
Note: To reduce calculation time, set the parameter value for ROI_PERIOD_LIMIT as low as possible; however, it must be higher than the value for ROI_PERIOD.
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As a result of this of this activity: