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 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.
For more information about cost calculation, see Cost Calculation.
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 co-/by-product cost distribution is used, a structure with at least one co- or 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:
- 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 cost distribution is used for co-/by-products, the cost will be determined for the primary product by
subtracting the costs distributed among the produced parts. Otherwise, the costs of the produced parts, 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.