Costing BDR—Exercises

Basic Data Setup

Note : When a site is created:

  1. System-generated cost buckets containing required cost elements for material, labor, machine and subcontracting costs and those for labor, machine and subcontracting overheads are automatically created.
  2. Further these system-generated material and operation cost buckets are automatically connected to system-generated purchasing and manufacturing cost templates respectively.
  3. The system-generated manufacturing and purchasing cost templates are automatically connected to system-generated cost sets (Cost Set1 to Cost Set4) of the site.
  4. When an inventory part is created, the cost templates assigned for the cost sets or those defined in the Part Cost Group window (when the part is attached to a Part Cost Group ) are attached to the part.

That means this exercise is necessary when material, delivery, general overheads and summary buckets (bucket of buckets) are needed for the part.

Cost Elements

Purpose: To be able to create the two templates mentioned above, you need to create the following two new cost elements, both defined as overhead costs: Material Overhead and Delivery Overhead.

Windows:
Cost Elements
Overhead Cost Assistant

Material Overhead

  1. Your company, IFS Racing, works with material overhead of 5% based on the latest purchase price. Open the Cost Elements window.
  2. Register your new cost element with the source element 120 (Latest Purchase Price), the element factor 5, and the overhead type Material Overhead (used for accounting).
  3. Alternatively, use the Overhead Cost Assistant to perform the previous step. This wizard guides you through the process of defining overhead costs.

Delivery Overhead

  1. IFS Racing has a delivery overhead, which is fixed material overhead of 10. In the Cost Elements window, register your new cost element with the element fixed cost 10, the element factor 100, and the overhead type Delivery Overhead (used for accounting).
  2. Alternatively, use the Overhead Cost Assistant to perform the previous step. This wizard guides you through the process of defining overhead costs.

Buckets

Purpose: To create buckets of different types to be used in templates later on. We need the following three new buckets: Material Overhead, Delivery Overhead, and Sum Material Related Costs.

Windows:
Cost Bucket

  1. Open the Cost Bucket window.
  2. Define a bucket for material overhead. The bucket type should be Bucket of Elements.
  3. Connect your new cost element for material overhead from the exercise above to this new bucket.
  4. Define a bucket for delivery overhead. Again, the bucket type should be Bucket of Elements.
  5. Connect your new cost element for delivery overhead from the exercise above to this new bucket.
  6. Define a bucket for the summary row in the template. This time, the bucket type is Bucket of Buckets.
  7. Connect three buckets, first 110 (Estimated Material Cost) and then the two registered in this exercise, to your new bucket type, Bucket of Buckets.

Template

Purpose: To create the two templates that are described above in alternatives A and B.

Windows:
Cost Template
Part Cost Group

  1. IFS Racing calculates parts using either Template A or Template B. Create these templates, and name them properly (A is for manufactured parts, and B is for purchased parts).
  2. Open the Cost Template window.
  3. Connect the necessary cost buckets in each template. Let the created templates be the default templates for your part cost groups. 
  4. Open the Part Cost Group window, and query for your previously created part cost groups.
  5. Register your new templates as the default templates for your part cost groups. To do so, enter your template for manufactured parts as Manufacturing Cost Template ID, and your template for purchased parts as Purchasing Cost Template ID for your part cost groups.

Assign Template to Inventory Parts

Purpose: To try different ways of assigning templates to inventory parts.

Windows:
Inventory Part/Misc Part Info
Part Cost Group
Part Cost

  1. Assign your part cost groups to your inventory parts using the different windows above. 
  2. Open the Inventory Part window, and click the Costs tab. Also open the Part Cost Group and Part Cost windows.
  3. Let your new cost set use your new templates, and let the system-generated cost sets use their default template.
  4. In the Part Cost Group window, click the Override Template tab and then the Cost Set tab.
  5. Register the system-generated templates against Cost Sets 2, 3, and 4, as shown below.

Assign Template to Cost Set

Purpose: To assign a cost template to a cost set, manufacturing Cost Template ID (manufactured parts), and purchase Cost Template ID (purchased parts).

Windows:
Costing Basic Data7Cost Set

  1. Assign Templates M–110 and P–110 to Cost Set 2 (Estimated Material Cost).
  2. Assign Templates M–110 and P–120 to Cost Set 3 (Latest Purchase Price).
  3. Assign Templates M–110 and P–130 to Cost Set 4 (Average Purchase Price).

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