Using Cost Details for Manufactured Parts — Exercises

IMPORTANT
It is extremely important that you set up and work within your own company to maintain your data integrity. If you work within any other company, your exercises will not function as intended and the data of other students might be affected. Predictable exercise results require that your data is isolated in your own company.

Note: To perform this exercise you must have finished the Using Cost Details for Purchased Parts exercise.

Basic Data Setup

Enter Basic Data for Cost Details

Purpose: The purpose of this exercise is to set up the basic data to get the cost details to work.

Windows:
Work Center
Manufacturing Labor Class
Cost Details Basic Data
Modify Posting Cost Group

 

If you have not already done so, create Work Center, Labor Class, Cost Source, Posting Cost Groups and connect them as explained below.

  1. Enter work center XXWLD with description Welding (replace XX with your initials). Enter a work center cost for cost set 1.
  2. Enter labor class XXASS with description Assembly (replace XX with your initials). Enter a labor class rate.
  3. Enter cost source XXW1 with description Dep. Welding and XXA1 with description Dep. Assembly (replace XX with your initials).
  4. Make sure that work center is used as cost source indicator for machine and labor class is used as cost source indicator for shop order - labor.
  5. Connect work center XXWLD with cost source XXW1 and labor class XXASS with cost source XXA1.
  6. Enter posting cost group XXL with description Labor and XXMC with description Machine (replace XX with your initials).
  7. Connect posting cost group XXL with cost bucket 200 - Labor Cost and XXMC with cost bucket 300 - Machine Cost.

General exercise for Setting up Work Centers, Production Lines, Labor Classes and Manufacturing Tools
General exercise for Setting up Cost Sources
General exercise for Setting up Posting Cost Groups

Create Manufactured Inventory Part with Order Based Lot Tracking

Purpose: The purpose of this exercise is to create a manufactured part with a product and routing structure to be used in the main exercise.

Windows:
Inventory Part
Part
Product Structure
Routing

  1. Open the Inventory Part window.
  2. Create Steering Device as an inventory part, and give it the part number XX99-011 (replace XX with your initials).
  3. Enter Manufactured as the part type.
  4. Open the Part window, query for your part and select Order Based from the Lot/Batch Tracking list.
  5. Open the Inventory Part window, click the Inventory Part/Misc Part Info tab and enter Weighted Average as the inventory valuation method and Cost per Lot Batch as the cost level.
  6. Open the Product Structure window and query for part XX99-011.
  7. Add part XX99-009 and XX99-010 as components with quantity per assembly =1.
  8. Right-click and then click Buildable.
  9. Open the Routing window and query for part XX99-011.
  10. Add one operation as described in the table below.
    Operation No. Description Work Center Labor Class Machine Run Factor Labor Run Factor
    10 Welding

    XXWLD

    		 XXASS 3

    5
  11. Right-click and then click Buildable.

General exercise for Manufactured Inventory Part
General exercise for Part Catalog
General exercise for Creating Product Structure
General exercise for Creating Routing

Main Exercise

Purpose: The purpose of this lesson is to learn how the cost details are built up for manufactured parts.

Windows:
Shop Order
Manual Issue Shop Order
Report Shop Order Operation
Receive Shop Order
Operation History
Labor History
Inventory Transaction History
Inventory Part
Inventory Part Unit Cost

Cost Details for Manufactured Parts

  1. Open the Shop Order window and create a new record.
  2. If the value for the Site field is not your site, change it to your site.
  3. In the Part No. field, enter XX99-011 as the part to be manufactured.
  4. In the Lot Size field, enter 1 for the quantity to be manufactured.

  5. Save the information.

  6. Right-click anywhere in the Shop Order window header, and then click Release.
  7. Open the Manual Issue Shop Order window and query for your shop order.
  8. Enter the quantity that you need to issue in the Qty to Issue field and save.
  9. Select the second component part no by using the Order No list.
  10. Enter the quantity that you need to issue in the Qty to Issue field and save.
  11. Open the Report Shop Order Operation window and query for your shop order.
  12. Select the operation line and right-click and then click Report Time.
  13. Open the Receive Shop Order window and query for you order.
  14. Create a new record in the Inventory Receipt tab. Enter a picking location in the Location No field and select a lot batch no from the list of values. Enter 1 in the Quantity Received field.
  15. Save the information.
  16. Open the Inventory Transaction History window, and query for the component issue transactions using SOISS as Transaction Code and your shop order number as Order Ref 1. Study the values in the Cost Details tab and the postings in the Accounting tab.

Note: There should be two issue transactions, one for each component.

  1. Open the Operation History window, and query for your shop order number. Study the values in the Cost Details tab and the postings in the Accounting tab.
  2. Open the Labor History window, and query for your shop order number. Study the values in the Cost Details tab and the postings in the Accounting tab.
  3. Open the Inventory Part. Query for part XX99-011, and study the values in the Cost/Inventory Value tab. Select the line in the table and right-click and then click Cost Details. Study the values in the Inventory Part Unit Cost window.
  4. Open the Inventory Transaction History window, and query for the part number XX99-011. Study the values in the Cost Details tab and the postings in the Accounting tab.

Note: Both the posting cost group and cost source are control types in the posting control and could be used to control the financial postings.