Define Costs—Exercises

Basic Data Setup

Purchased and Manufactured Inventory Parts

Purpose: The purpose of this exercise is to enter the manufactured and purchased parts used in the main exercises.

Windows:
Inventory Part

1. Enter inventory parts as described in the table below.

   Part No.	Description	Part Type
   XX-98-100	Wheel	Manufactured
   XX-98-200	Aluminum Rim	Manufactured
   XX-98-300	Aluminum	Purchased
   XX-98-400	Tire	Purchased

General exercise for Purchased Inventory Part
General exercise for Manufactured Inventory Part

Supplier for Purchase Part

Purpose: The purpose of this exercise is to enter supplier for the purchased parts created above.

Windows:
Supplier for Purchase Part

1. Open the Supplier for Purchase Part

2. Query for the purchase part that you created.
3. Connect a supplier for the purchase parts.

General exercise for Supplier for Purchase Part

Cost Elements and Cost Buckets

Purpose: The purpose of this exercise is to enter cost elements and cost buckets for the part specific overheads of types Material, Multiple Delivery, General and Sales Overhead.

Windows:
Overhead Cost Assistant
Cost Bucket

1. Create a cost element for the part-specific material overhead with the cost element ID XX-IA (replacing XX with your initials) and with the description Issue Administration. Use cost element 501 - Material Overhead Trigger as Source Element.
2. Create a cost element for the part-specific general overhead with the cost element ID XX-GA (replacing XX with your initials) and the description as General SO Administration. Use cost element 502 - General Overhead Trigger as Source Element.
3. Create a cost element for the part specific sales overhead with the cost element ID XX-OA (replacing XX with your initials) and with the description Customer Order Administration. Use cost element 601 - Sales Overhead Trigger as Source Element.
4. Create a cost element for the multiple delivery overhead with the cost element ID XX-DA (replacing XX with your initials) and the description Delivery Administration. Use cost element 141 - Purchase Delivery Overhead Trigger as Source Element.
5. Create cost buckets (Buckets of elements) and connect cost elements for each cost element created above.

Note 1: The step 5 above is not needed if the Overhead Cost Assistant is used in creating overhead cost elements. Corresponding cost buckets are also created with the cost elements connected when the wizard is used.

General exercise for Cost Element

Set Up Cost Templates and Assign Cost Templates to the Parts

Purpose: The purpose of this exercise is to modify two system-defined cost templates and assign them to the manufactured and purchased parts used in the main exercise.

Windows:
Cost Template
Part Cost

1. Add the buckets for part-specific Material, Multiple Delivery, to the existing cost template P-110 (bucket 110 should already be included).
2. Add the bucket for part-specific General and part specific Sales Overhead to the existing cost template M-110.
3. Connect cost template P-110 to cost set 2 for your purchased parts and cost template M-110 to cost set 2 for your manufactured parts.

General exercise for Set Up Cost Template
General exercise for Assign Template to Inventory Parts

Work Center

Purpose: The purpose of this exercise is to enter the work centers used in the main exercises.

Windows:
Work Center

1. Create an internal work center with the ID XXA (replacing XX with your initials) and the description Assembly.
2. Create an outside work center with the ID XXC (replacing XX with your initials) and the description Coating. Enter supplier 5000 as supplier on the work center.

General exercise for Work Center

Labor Class

Purpose: The purpose of this exercise is to enter the labor class used in the main exercises.

Windows:
Manufacturing Labor Class

1. Create a labor class with the ID XXW (replacing XX with your initials) and with the description Welding.

General exercise for Labor Class

Required Data

Create Product Structure

Purpose: The purpose of this exercise is to enter the product structure for your manufactured parts.

Windows:
Product Structure

1. Open the Product Structure window, query for your manufactured parts and enter the structures for your manufactured parts.
   Part XX-98-100 Wheel consists of 1 unit of XX-98-200 Aluminum Rim and 1 unit of XX-98-400 Tire.
   Part XX-98-200 Aluminum Rim consists of 1 unit of XX-98-300 Aluminum.
   Change status to Buildable for both structures.

Create Routing

Purpose: The purpose of this exercise is to show you the required data that is used in the exercise for subcontracting costs below.

Windows:
Routing

1. Open the Routing window and query for your part no.
2. Create one new operation line using the data defined in the table below. Use the outside work center previously created.
3. When saving the line you will be asked if you want to create an outside operation item. Enter a purchase part no, description, price and unit of measure and click OK.

   Operation No.	Description	Work Center	Machine Set up time	Machine Run Factor	Factor Unit
   10	Paint Part	XX-C	1	0.4	Hours/Unit

General exercise for Creating Routing

Main Exercise

Purpose: The purpose of this lesson is to define different costs connected to different objects in the system.

Windows:
Inventory Part
Part Cost
Multiple Delivery Overhead Setup
Work Center
Manufacturing Labor Class
Subcontracting Cost

Define Material Costs

1. Open the Inventory Part window and query for your part.
2. Click the Costs tab.
3. Enter a value in the Estimated Material Cost field for parts XX-98-300 and XX-98-400.

Note 1: An estimated material cost could also be defined per cost set in the Part Cost window.
Note 2: The Latest and Average Purchase Price columns get their values through specific functions. These functions require historical purchase data in the system.

Define Part Specific Material Overhead Costs

1. Open the Part Cost window and query for your part and cost set 2.
2. Click the Part Specific Overheads tab.
3. Enter a line using cost element XX-IA (created in the basic data section above). Enter a start date, overhead rate and overhead unit.

Define Multiple Delivery Overhead Costs

1. Open the Multiple Delivery Overhead Setup window and query for your cost element for the multiple delivery overhead (XX-DA).
2. Click the Supplier for Purchase Part tab.
3. Create a new record. Enter values in Site, Cost Set 2, Purchase Part fields. Enter a corresponding supplier  (created in the basic data section above). Enter a start date, overhead rate and overhead unit. Select the Add Delivery OH to Purchase Part check box (This will add any Purchase Part Delivery Overhead to the Supplier for Purchase Part Delivery Overhead defined for the Purchase Part, Multiple Delivery OH Cost Element and Cost Set).
4. Click the Purchase Part tab.
5. Create a new record and enter values in Site, Cost Set 2, and Purchase Part (created in the basic data section above). Enter a start date, overhead rate and overhead unit. Select the Add Delivery OH to Supplier check box (This will add any Supplier Delivery Overhead to the Purchase Part Delivery Overhead defined for the Purchase Part, Multiple Delivery OH Cost Element and Cost Set).
6. Click the Supplier tab.
7. Create a new record and enter values for Site and Cost Set 2. Enter a start date, overhead rate and overhead unit.

Define Machine Costs

1. Open the Work Center window and query for your internal work center.
2. Click the Cost tab.
3. Enter a work center and an overhead 1 cost on the existing line for cost set 2. Use hour as cost and overhead unit.

Define Labor Costs

1. Open the Manufacturing Labor Class window and query for your labor class.
2. Click the Cost tab.
3. Enter a labor class rate and an overhead cost on the existing line for cost set 2. Use percentage as overhead unit.

Define Subcontracting Costs

1. Open the Subcontracting Cost window and query for your part and outside operation.
2. Enter a unit and a unit overhead cost on the existing line for cost set 2.

Define Part Specific General Overhead and Sales Overhead Costs

1. Open the Part Cost window and query for your part and cost set 2.
2. Click the Part Specific Overheads tab.
3. Create a new record and enter values for the part-specific general overhead cost using cost element XX-GA (created in the basic data section above). Enter a start date, overhead rate and overhead unit.
4. Create a new record and enter values for the part-specific sales overhead cost using cost element XX-OA (created in the basic data section above). Enter a start date, overhead rate and overhead unit.