Calculate Cost for Single Part, All Levels
Explanation
Use this activity to calculate costs for a single part at all levels.
Note: You cannot perform a cost calculation for cost set 1. This optional
task is to be performed by a system administrator or equivalent person.
Calculating part costs on all the levels means that costs for parts at underlying
structures are considered as well as the costs for the selected part. When calculating
the costs, the costs set up throughout the system are gathered and attributed
to the correct part.
You can enter a specific version (alternative) for a part structure and routing.
You can also define parts so that the calculation is stopped and costs are not
rolled up. Component part costs will be updated only if the Struct.Alt.
and the Rout.Alt fields are set to the default value; indicated by an
asterisk(*)
This activity can be performed in the All Levels Part Cost
Calculation, Part Cost and
Part Costs page.
If by-products exist, you can distribute the costs between by-products and
the primary product. When calculating the product cost, if you use by-product
cost distribution, the sum of the specified percentage of each by-product for
this item is calculated. The remaining percentage will be calculated from the
primary product.
If material overheads are defined in part overheads, material overheads are
added to to the parent level in the cost structure. When material and general
overheads are connected to a part, and the part cost record has a template which
consists of a cost bucket that is connected to a cost element which uses cost
element source 501 or 502, during cost calculations for a site or part or cost
set, the system fetches cost using different overhead units as follows:
- Percentage of part cost - Same as for the cost element 500 (Total
cost). When it comes to general overhead, the rate has to be applied to
the part cost excluding the earlier applied general overheads.
- Fixed value per unit - Add that cost to part cost structure.
- Fixed value per Order/Batch - If the overhead type is Material
Overhead, then the parent lot size is used. If parent standard size
is 0, then count with order size 1. To calculate unit cost, divide the fixed
value with parent standard order size.
- Fixed value per weight unit - The net weight of the inventory
part must be considered. Multiply the entered cost with the net weight of
the part and add that cost to the part cost structure.
Prerequisites
This activity has the following prerequisites:
- The cost set for which you are performing the calculation must have
the costs defined.
- If by-product cost distribution is used, a structure with at least one
by-product must exist.
- Calculation of costs using by-product cost distribution will require
that the by-product cost distribution basic data has been entered for the
manufacturing structure using the Product Structure,
Recipe Structure, or Configuration
Structure page.
System Effects
As a result of this activity:
- The costs for a single part on all levels are calculated and the results
are saved in the selected cost set.
- Cost comparisons for a part can be calculated across different cost
sets. This allows you to determine the parts that should be transferred
into cost set 1 for the purposes of standard costing.
- If the by-product cost distribution is used, the cost will be determined
for the primary product by subtracting the costs distributed among the by-products,
otherwise, the costs of the by-products, if any, will be subtracted.
- If the Copy Estimated Material Cost from Inventory Part is
enabled, estimated material cost in inventory part will be taken
as the estimated material cost for the part for the cost set and will be
copied in to the Cost Set Estimated Material Cost field.