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
windows.
If by-products exist, you can distribute the costs between by-products and
the primary product. When calculating the product cost, if you use by-product
cost distribution, the sum of the specified percentage of each by-product for
this item is calculated. The remaining percentage will be calculated from the
primary product.
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.
Prerequisites
This activity has the following prerequisites:
- 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 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 window.
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 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 check box is selected, 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.
Window
All Levels Part Cost
Calculation
Part Cost
Part Costs
Related Window Descriptions
All Levels part Cost Calculation
Part Cost
Part Costs
Procedure
To perform this activity in the
All Levels Part Cost Calculation
window:
- Open the All Levels Part Cost Calculation
window.
- To change the default site, click List in the Site field and
select the site whose costs you wish to copy.
- In the Part No field, click List and select the part for
which the calculation should be performed.
- In the Cost Set field, click List and select the cost set
for which you want to perform the cost calculation.
- To copy structure alternates, click List in the Struct. Alt.
field and select the alternative.
- To copy routine alternates, click List in the Struct. Alt.
field and select the alternative.
- In the Stop Roll list, click either Not Stop Cost Rollup
or
Stop Cost Rollup.
- To specify the serial part for which the calculation should be performed,
if serial numbers are used, click List in the Effective Serial No
field and select the serial number.
- Click OK.
To perform this activity in the
Part Cost or
Part Costs
window:
- Open the Part Cost or
Part Costs
window.
- Query for the part for which you want to perform the cost calculation.
- Right-click
the header and then click Cost Calculations/All Levels Part Cost
Calculation. The values from the selected part will be shown
in the All Levels Part Cost Calculation dialog
box.
- Click OK.