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 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.
For more information about cost calculation, see Cost Calculation.
Prerequisites
This activity has the following prerequisites:
- The cost set for which you are performing the calculation must have the costs defined.
- If co-/by-product cost distribution is used, a structure with at least one co-/by-product must exist.
- Calculation of costs using the co-/by-product cost distribution will require that the 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 co-/by-product cost distribution is used, the cost will be determined for the primary product by
subtracting the costs distributed among the co-/by-products, otherwise, the costs of the co-/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.