Connect Cost Elements to Estimate Cost Types

Explanation

There are twelve estimates cost types that can incur in an estimate for a manufactured product. Namely, Material, Machine, Labor, Subcontracting, General Overhead, Delivery Overhead, Material Overhead, Labor Overhead, Machine Overhead1, Machine Overhead2, Subcontracting Overhead or Not Used.

If you need to see the costs broken down into the same structure, you need to assign different cost elements to each cost type. Since markups are also defined for cost elements have to take that also into consideration. i.e., if you want to define a specific markup for subcontracting cost, you have to define a separate cost element for subcontracting. If you want to group several cost types together, for example, Machine, Machine Overhead 1 and Machine Overhead 2 costs as Machine Costs, you should create a cost element called Machine and connect it to the above three cost types.

When costs are inherited from part costs, the cost bucket cost types are mapped with estimate cost type and cost elements are fetched accordingly.

Prerequisites

Cost elements with element type Cost should be defined first if they do not exist already.

System Effects

If inter-site handled items exist in the estimate belonging to a separate company, cost element of the supply company are used in the cost calculation of the inter-site handled item.