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
windows.
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 window.
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 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 field Cost Set Estimated
Material Cost.
Window
One Level Part Cost Calculation
Part Cost
Part Costs
Related Window Descriptions
One Level Part Cost Calculation
Part Cost
Part Costs
Procedure
To perform this activity in the
One Level Part Cost Calculation
window, follow these steps:
- Open the One Level Part Cost Calculation
window.
- In the Site field, click List and select the site for which
you want to perform the cost calculation.
- 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 include the alternative of structure and routing, click List in
the
Struct. Alt. and Rout. Alt. fields and select the
alternatives.
- In the Stop Roll list, click either Not Stop Cost Rollup
or
Stop Cost Rollup.
- If serial numbers are used, click List in the Effective Serial
No field and select the serial part for which the calculation should be
performed. If serial numbers are not used, you can specify the date on which
the structure and routing should be valid in the
Effective Date field.
- Click OK.
To perform this activity in the
Part Cost or
Part Costs
window, follow these steps:
- Open the Part Cost or
Part Costs
window.
- Select the part for which you want to perform the cost calculation.
- Right-click and then click Cost Calculations/One
Level Part Cost Calculation. The values from the selected part will be shown in the
One Level Part Cost Calculation dialog box.
- Click OK.