Purchase Costing - Exercises

Basic Data Setup

Prepare for Purchase Costing

Purpose: The purpose of this exercise is to show you how to set up the basic data required for purchase costing.

Windows:
Costing Basic Data
Cost Template
Cost Bucket
Inventory Part
 Supplier for Purchase Part

  1. Open the Costing Basic Data window. Go to Cost set tab.
  2. Create a new cost set.
  3. Go to Overhead Cost Definition tab. Create two new Cost Elements for Delivery Overhead and Material Overhead, specifying Cost Element 140 as the source element.
  4. Open the Cost Template window.
  5. Create a new purchase cost template.
  6. Go to Cost Template tab. Create a new record.
  7. Add Cost Bucket 140 to the cost template. Save the information.
  8. Repeat the process to add Cost Buckets 160 and 170 to cost template.
  9. Open the Inventory Part window and create a new purchase part.
  10. Open the Supplier for Purchase Part window. Query for the purchase part that you created. Connect a supplier for the purchase part.
  11. Go to General tab. Enter a value to Additional Costs.  
  12. Go to Charges tab. Create a new record and add charges by the supplier. Remember that you should not select Per Amount or Per Line in Distribute Charge By Column. Leave that column blank.

Main Exercises

Create Simulated Purchase Costs

Purpose: The purpose of this exercise is to show you how to use a simulation to demonstrate how the cost of an end product or a subassembly is affected by a currency change or an adjustment of a supplier’s prices.

Windows:
Create Simulated Purchase Costs

  1. Open the Create Simulated Purchase Costs window.
  2. Enter the parent part, cost set, and site. 
  3. Choose a simulation by currency or supplier, by entering either currency or supplier. Use the List button to get the list of values to choose among. 
  4. Click OK to perform simulation.

Sensitivity Analysis for Purchase Costs

Purpose: The purpose of this exercise is to show you how to analyze the effects of a currency change or an adjustment of a supplier’s prices on the cost of an end product or a subassembly. 

Windows:
Sensitivity Analysis for Purchase Costs

  1. Open the Sensitivity Analysis for Purchase Costs window and query for the part used in previous exercise.
  2. Analyze the graph.
  3. Go to Purchase Component tab and check what purchase parts that are affected by the simulation.