Analyze Shop Order Costs
Explanation
This activity is used to analyze shop order costs. This ensures that the costs generated from the manufacturing
process can be followed up and compared against the planned cost. When a shop order is created, the system
automatically calculates the costs, based on the order-specific data. For a disassembly shop order the standard
costs comes from the disassembly components, since the part on the shop order will not be received. When
co-products or by-products also are produced, the standard cost also includes the cost of these.
Note: When a shop order is in the Planned status or Released status,
the part cost buckets added on the Cost Template in Cost Set One page can be updated by
clicking Calculate Order Cost on the Shop Order Costs page. The order cost
estimates will not be automatically calculated after an order has reached the Started status, but
it is possible to calculate the order cost estimates for an order in the Started status via
the Shop Order page, by clicking Costing then Calculate Order Estimated
Cost.
Using the Shop Order Costs page:
- Use the Overview Unit Cost tab to view the cost per unit of a specific part. The sigma sign at
the bottom of the table allows for an overview of all costs, both actual and estimated.
- Use the WIP Status tab to view the status of the work in process (WIP) account for the shop
order. This can be queried at any time in the manufacturing process. The data fields displayed are connected to
the accounting system, showing the totals calculated for the shop order. At any given point in time, it is
possible to view the actual costs derived from production of a part, together with the relevant postings made in
the accounting system.
- Use the Order Cost Estimates tab to to view the order cost estimates associated with the shop
order. The costs for main products and produced parts can be viewed separately.
- Use the Estimate Details tab to view the order cost estimates associated with shop order
operation, cost bucket and cost source. The costs for each component is specified on a separate line.
- Use the Standard Cost tab to view the standard costs associated with the operations of the shop order for
both main products and produced parts.
- Use the Actual Cost tab to view the actual costs associated with the operations of the shop
order for both main products and produced parts.
- Use the Cost Variance tab to view the variance of the different cost buckets from standard cost
calculations, order cost estimates and the actual costs. There are six different variances using both level and
accumulated costs, resulting in a total of twelve variances presented. The variances are presented both as
factors and figures with a sum total at the bottom of the table. The summation, denoted by the sigma sign at the
bottom of the table, allows for an overview of all cost variances for the shop order.
- Use the Order Details tab to view details related to the shop order, including information on
structures and routing. You also can view where the demand for parts originates, either within the company or
from an outside supplier.
- Use the Produced Parts tab to mainly view the total received cost of the
shop order main products and produced parts based on the Receipt of Shop Order (OOREC) transactions. The tab is
useful especially when you receive co-products, by-products or dissassembly components from the shop order. You
can also view the total standard cost and the total estimated cost based on the received quantity.
- Click Order Details and then Actual Cost Details to view actual costs on a more detailed level.
Costs are shown on transaction level, and this page includes inventory, machine, scrap and labor transactions as
well as general overhead transactions.
- Click Order Details and then Costed Operations to view the operations associated with the shop
order.
- Click Order Details and then Project Cost Analysis to view planned and committed cost and hours
as well as the used cost and actual hours per project cost element for the shop order. This tab will only
contain data if the shop order is connected to a project. The costs and hours in this tab are the source of
information when system is calculating costs and hours for the connected project activity. Please note that only
material that is standard planned is included in the calculation of material cost. Material cost for material
that is procured by the project is not included since this material cost will be captured/calculated through
other supply orders.
Use the Shop Orders Costs page to get a summarized overview for the costs per shop order.
Prerequisites
- Cost calculations must have been performed and copied to cost set 1 for the parts intended to be processed
with the shop order.
- Aggregate shop order costs should have been calculated using Aggregate Shop Order Costs per Shop
Order prior to using Shop Orders Costs page.
System Effects
As a result of this activity, the system displays shop order costs for the shop order.