Calculate Cost for Single Part, One Level
Explanation
This activity can be used to calculate costs for one level for an inventory
part.
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.
When calculating costs, the costs set-up throughout the system are gathered
and attributed to the correct part. When calculating the part costs for a cost
set, only the level cost for the selected part is calculated. Total level cost
does not include accumulated component material costs. No costs for any underlying
structure will be calculated. However, already calculated costs of
the components one level below, will be rolled up for one level.
This activity can be performed through One Level Part Cost
Calculation in Part Cost and
Part Costs page.
If by-products exist, the cost of the primary product is calculated in one
of the following ways. Either the costs of the by-products are subtracted from
the calculated costs to determine the cost of the primary product, or the cost
of the primary product is determined using by-product cost distribution. If
you use by-product cost distribution, then the by-product cost distribution
factors for each of the by-products identify how much of the calculated costs
are subtracted. The remaining costs are used for the cost of the primary product.
If material overheads are defined in part overheads, the material overhead
is 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 costs 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:
- Cost sets must have been defined.
- Inventory parts must have been created.
- 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 the 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:
- Costs will be calculated for a single part at one level, and the results
will be saved in the selected cost set for update and comparison purposes.
- Only the level cost for the selected part will be calculated. Costs
for an underlying structure will not be rolled up.
- If 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 field Cost Set Estimated Material Cost.