Calculate Cost for Cost Set

Explanation

This activity can be used to calculate costs for all parts connected to the same cost set. This optional but recommended task is to be performed by a system administrator or equivalent person. Information about the cost calculation process can be found in Background Jobs - RMB View Details.

Note: You cannot perform cost calculation for cost set 1.

The estimated material cost considered for the cost calculation will be the cost set estimated material cost entered for the cost set of the inventory part

If material overheads are defined in part overheads, material overheads are added to the parent level in the cost structure. When material and general overheads are connected to a part, and the part cost record for the cost set has a cost template which consist of cost buckets that are 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.

If sales overheads are connected to a part, and the part cost record for the cost set has a cost template which consists of cost buckets that are connected to cost elements which uses cost element source 601, during cost calculations for a site or part or cost set, the system fetches costs using different overhead units. This is similar to how the system fetches costs for Part Connected Material Overheads discussed above.
However sales overheads connected to components are not inherited to parent parts and only those connected to parent parts are listed in part cost structure for the parent part.
To view the sales overheads in part cost structure,  Including Sales OH check box under Cost Build-Up Level in Part  window needs to be selected. 
When delivery overheads are connected to a part, and the part cost record for the cost set has a cost template which consist of cost buckets that are connected to cost elements which use cost element source 141, during cost calculations for a site or part or cost set, the system fetches costs using different overhead units as follows:

• Percentage of Cost Set Estimated Material Cost - The entered percentage from cost set estimated material cost of the part is added to part cost structure.
• Fixed value per unit - Add that cost to part cost structure.
• Fixed value per Order/Batch - For cost calculation, standard lot size is used. If standard size is 0, then count with order size 1. To calculate unit cost, divide the fixed value with 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.
• Percentage of Planned Purchase Price - Add the entered percentage of planned purchase price in IFS currency format as entered in supplier for purchase part of the inventory part, If planned purchase price in supplier for purchase part is 0, cost set estimated material cost of the inventory part for the cost set will be considered as the planned purchase price. (This overhead unit will not be available for Purchase Part Delivery Overheads).
• Percentage of Latest Purchase Price -  Add the entered percentage of latest purchase price in inventory part , If latest purchase price is 0, cost set estimated material cost of the inventory part for the cost set will be considered as the planned purchase price.
• Percentage of Average Purchase Price - Add the entered percentage of average purchase price in inventory part , If average purchase price is 0, cost set estimated material cost of the inventory part for the cost set will be considered as the planned purchase price.

Prerequisites

This activity has the following prerequisites:

• Cost sets must be defined.
• Sites must be defined.
• Inventory parts must be created.
• The cost set for which you are performing the calculation must have costs defined.

System Effects

Costs will be calculated for all parts connected to the selected cost set on all levels and the results will be saved in the cost set.

Window

All Parts Cost Calculation

Related Window Descriptions

All Parts Cost Calculation

Procedure

You can calculate the cost for all the parts connected to the same cost set, either by direct execution (procedure A) or by scheduling the task to execute as a background job (procedure B).

Procedure A:

1. Open the All Parts Cost Calculation window.
2. In the Site field, click List and change the site for which you want to perform the cost calculation.
3. In the Cost Set field, click List and select the cost set you want to perform the cost calculation.
4. In the Effective Date field, click List and select the date when structures and routings should be valid.
5. In the Stop Roll list, click either Not Stop Cost Rollup or Stop Cost Rollup.
6. Click OK.

Procedure B:

1. Click Schedule. The New Database Task Schedule window appears.
2. Set the scheduling parameters as required and save your changes.