Maintain Costing Data—Exercises

IMPORTANT
If you are a student, it is extremely important that you set up and work within your own site to maintain your data integrity. If you work within any other site, you will compromise your own exercise data as well as the data of other students. Predictable exercise results require that your data be isolated in your own site.

Basic Data Setup

Purchased and Manufactured Inventory Parts

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

Windows:
Inventory Part

  1. Enter inventory parts as described in the table below.
    Part No. Description Part Type Estimated Material Cost
    XX-98-100 Wheel Manufactured --
    XX-98-200 Aluminum Rim Manufactured --
    XX-98-300 Aluminum Purchased 300
    XX-98-400 Tire Purchased 150

General exercise for Purchased Inventory Part
General exercise for Manufactured Inventory Part
General exercise for Define Material Costs

Cost Elements and Cost Buckets

Purpose: The purpose of this exercise is to create cost elements and buckets for material, delivery and sales overhead used in the main exercise.

Windows:
Cost Elements
Cost Bucket
Overhead Cost Assistant

  1. Your company, IFS Racing, works with a material overhead of 5% based on the estimated material cost. Register a new cost element with source element 110 (Estimated Material Cost), element factor 5, and overhead type Material Overhead.
  2. IFS Racing uses a fixed delivery overhead of 10 per unit. Register a new cost element with fixed cost 10, OH cost relation Unit, and overhead type Delivery Overhead.
  3. IFS Racing also uses part specific sales overheads for packing material. Register a new cost element with source element 601 (Sales OH Trigger), and overhead type Sales Overhead.
  4. The actual rate for the sales overhead is defined per part. Open the Part Cost window, query for your parts and cost set 2 and register the part-specific sales overhead. Use the cost element created in the previous step and enter the cost 15 per unit for your purchased parts and 25 per unit for your manufactured parts.
  5. IFS Racing also uses part-specific material overhead for part XX-98-400 Tire. Register a new cost element with source element 501 (Material OH Trigger), and overhead type Material Overhead.
  6. The rate for the part-specific material overhead is defined per part. Open the Part Cost window, query for part XX-98-400 and cost set 2 and register the part specific material overhead. Use the cost element created in the previous step and enter the cost 15 per unit.
  7. IFS Racing also uses part specific general overhead for part XX-98-100 Wheel. Register a new cost element with source element 502 (General OH Trigger, and overhead type General Overhead.
  8. The rate for the part specific general overhead is defined per part. Open the Part Cost window, query for part XX-98-100 and cost set 2 and register the part-specific general overhead. Use the cost element created in the previous step and enter the cost 15 per unit.
  9. IFS Racing also uses multiple delivery overheads for part XX-98-400 Tire. Register a new cost element with source element 141 (Purchase Delivery OH Trigger), and overhead type Delivery Overhead.
  10. The rates for the multiple delivery overheads are defined per supplier for purchase part, per purchase part and per supplier. Open the Multiple Delivery Overhead Setup window and query for the cost element created in previous step.
  11. To register supplier for purchase part delivery overhead, Open the Multiple Delivery Overhead Setup/ Supplier for Purchase Part tab, register the supplier for purchase part delivery overhead for part XX-98-400 and cost set 2. Enter the cost 15 per unit. Make sure to select the check box Add Delivery OH to Purchase Part.
  12. To register purchase part delivery overhead, Open the Multiple Delivery Overhead Setup/ Purchase Part tab, register the purchase part delivery overhead for part XX-98-400 and cost set 2. Enter the cost 15 per unit. Make sure to select the Add Delivery OH to Supplier check box.
  13. To register supplier delivery overhead, Open the Multiple Delivery Overhead Setup/ Supplier tab, register the supplier delivery overhead for supplier connected to the part and cost set 2. Enter the cost 15 per unit.
  14. Create separate cost buckets for the six cost elements and connect the cost elements to the buckets.
  15. We also want a sum of the material related costs in our calculation. Define a bucket with bucket type Bucket of Buckets.
  16. Connect Bucket 110 (Estimated Material Cost), the material overhead buckets, and the delivery overhead buckets to the summary bucket.

Note: Most of the steps above could also be done using the Overhead Cost Assistant.

General exercise for Set Up Cost Elements
General exercise for Set Up Cost Buckets
General exercise for Define Sales Overhead Costs
General exercise for Define Part Specific Material Overhead Costs
General exercise for Define Part Specific General Overhead Costs
General exercise for Define Multiple Delivery Overhead Costs

Set Up Cost Templates and Assign Cost Templates to the Parts

Purpose: The purpose of this exercise is to create/modify two cost templates and assign them to the purchased and manufactured part used in the main exercise.

Windows:
Cost Template
Part Cost

  1. Add the buckets for material, delivery and sales overhead to the existing cost template P-110 (bucket 110 should already be included)
  2. Add the buckets for sales overhead and the material sum bucket (bucket of buckets) 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 and Labor Class

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

Windows:
Work Center
Manufacturing Labor Class

  1. Create an internal work center with the ID XXNC (replacing XX with your initials) and the description NC-Machine.
  2. Enter the work center cost 150 per hour and the overhead 1 cost 30 per hour in cost set 2.
  3. Create a labor class with the ID XXW (replacing XX with your initials) and the description Department Wheel.
  4. Enter the labor class rate 160 per hour and the overhead 1 cost 30 per hour in cost set 2.

General exercise for Work Center
General exercise for Define Machine Costs
General exercise for Labor Class
General exercise for Define Labor Costs

Required Data

Create Product Structure and Routing

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

Windows:
Product Structure
Routing

  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.
  2. Open the Routing window, query for your manufactured parts and enter the routings for your manufactured parts.
    Enter the following operations for the part XX-98-100 Wheel:
    Operation No. Description Work Center Mach Setup Mach Run Factor Factor Unit Labor Class Labor Setup Labor Run Factor Factor Unit Crew Size
    10 Prepare Assembly XXNC 0.2 0.5 Hours/Unit XXW 0.2 0.1 Hours/Unit 1
    20 Assembly XXNC 0 0 Hours/Unit XXW 0 1 Hours/Unit 1

Enter the following operations for the part XX-98-200 Aluminum Rim:

Operation No. Description Work Center Mach Setup Mach Run Factor Factor Unit Labor Class Labor Setup Labor Run Factor Factor Unit Crew Size
10 Machining XXNC 0.1 0.2 Hours/Unit XXW 0.2 0.1 Hours/Unit 1

Change status to Buildable for both routings.

General exercise for Creating Product Structure
General exercise for Creating Routing

Calculate Costs for Manufactured Part

Purpose: The purpose of this exercise is to perform a cost calculation for the parts used in the main exercise.

Windows:
All Levels Part Cost Calculation

  1. Open the All Levels Part Cost Calculation dialog box and calculate costs for manufactured part XX-98-100 Wheel in cost set 2 (make sure to calculate the costs for all levels).

Note: To have the estimated material costs for the cost calculation, it is important to enter the estimated material cost in Cost Set Estimated Material Cost field  in Part Cost/ Part Cost Details. However, the estimated material costs of corresponding inventory parts will be copied in to cost set estimated material cost and cost calculation will proceed with those copied values, if the Copy Estimated Material Cost from Inventory Part check box in Cost Calculation dialog box is selected.

General exercise for Cost Calculation

Main Exercises

Set Cost Calculation Status and Check Calculation Date

Purpose: The purpose of this lesson is to show you how to set the cost calculation status for parts.

Windows:
Part Cost
Site

  1. Open the Part Cost window and query for manufactured part XX-98-100 Wheel in cost set 2.
  2. Right-click and then click Calculation Status. If you look in the tree view, parts marked in red indicates that the calculation for the part is unapproved whereas calculations for parts marked in green is approved.
  3. Select purchase part XX-98-400 Tire in the cost structure and right-click and then click Approve Cost Calculation. This approves the calculation for the purchased part only and when checking the status again, it will be marked in green. If the parent part is approved, the underlying part structure is also approved. If a child part is approved, no other parts are approved as a result of this action.
  4. Select the top part and right-click and then click Cost Calculation Unapproved. When checking the status, all parts will be marked in red.

Note: The next step will not give any results if all calculations are made the same day. A way around this problem is to manipulate the time zone offset for the site.

  1. Open the Site window, query for your site and set the time zone offset to -24.
  2. Open the Part Cost window, query for part XX-98-400 Tire in cost set 2 and perform a calculation for that part.
  3. Return to the Site window and change the time zone offset back to 0. It will now look like you performed the calculation for part XX-98-400 yesterday.
  4. Return to the Part Cost window and query for part XX-98-100 Wheel in cost set 2.
  5. Right-click and then click Check Calculation Date. If the calculation date for parts in the structure deviates from the selected parent part, that will be marked in the tree view.

Copy Costs to Cost Sets

Purpose: The purpose of this lesson is to show you how to copy a cost to another cost set.

Windows:
Part Cost
Costing Basic Data

  1. Open the Part Cost window and query for one of your manufactured parts in cost set 2.
  2. Right-click and then click Copy Costs to Cost Set One to make your calculation effective. Be sure to copy the work center cost and labor cost by selecting the Copy Work Center, Labor, Sub Contracting Cost check box in the Copy Costs to Cost Set One dialog. Your calculation is now effective.
  3. Open theCosting Basic Datawindow and create a new cost set.
  4. Go back to the Part Cost window, right-click and then click Copy Cost Set. Enter your new cost set in the Cost Set To field. Be sure to copy work center cost and labor cost as well by selecting the Copy Work Center, Labor, Sub Contracting Cost check box in the Copy Copy Cost Set dialog box. Your calculation is now valid for the new cost set.

Copy Costs to Cost Set One - Selected Parts

Purpose: The purpose of this lesson is to show you how to copy costs of several selected parts to cost set 1.

Windows:
Part Costs

  1. Open the Part Costs window and query for several parts in cost sets other than cost set 1.

  2. Select the records whose cost sets you wish to copy to cost set 1.
  3. Right-click and then click Copy Costs to Cost Set One - Selected Parts. A dialog box appears.
  4. Select the Update Estimated Material Cost in Inventory Part check box to update estimated material cost of inventory parts.
  5. Select the Include Components check box to copy costs for parts in the underlying structure.
  6. Select the Include Configurable Parts check box to include copying of costs for configurable parts.
  7. Select the Copy Work Center and Labor Class Costs check box to copy work center costs and labor costs.
  8. Select the Sub Contracting Costs check box to copy sub contracting costs.
  9. Select the Copy Supplier Delivery Overhead check box to copy supplier delivery overheads.
  10. Select the Capture Cost Sources check box to capture the cost sources for the cost buckets in the part cost calculation.
  11. Select the Run in Background check box to run the process as a background job.
  12. Click OK.

Replace Cost Template Occurrences

Purpose: The purpose of these exercises is to show you how to replace cost template occurrences.

Windows:
Part Costs

  1. Open the Part Cost window and query for manufactured part XX-98-100 Wheel and cost set 3.
  2. Right-click and then click Cost Calculations/All Levels Part Cost Calculation and perform a calculation in cost set 3.
  3. Right-click and then click Replace Cost Template. Start replacing the cost templates for your purchase parts by changing the template from P-120 to P-110. Include components by selecting the Include Components check box.
  4. Optionally you can change the cost template for all manufactured parts in the structure. You have now updated the cost templates for all your parts in the structure, and you can calculate the part cost at all levels.
  5. To make the new cost calculation valid, right-click and then click Copy Costs to Cost Set 1.

Cleanup of Part Cost History

Purpose: The purpose of this lesson is to show you how to clean up part cost history data.

Windows:
Cleanup of Part Cost History
Part Cost History

Note: To perform this exercise you must have copied costs to cost set 1 for your parts.

  1. Open the Part Cost History window and query for your parts.
  2. Open the Cleanup of Part Cost History dialog box. Enter your site, tomorrows date in the Records older than: field (since we do not have any historical data in the system, we must use tomorrows date), and clear the Keep History On Part Level check box. Click OK.
  3. Return to the Part Cost Historywindow and re-query for your part. Is the record(s) still there?

Define Cost Estimator

Purpose: The purpose of this lesson is to show you how to establish the cost estimator role.

Windows:
Costing Basic Data
Part Cost
Part Costs

  1. Open the Costing Basic Data window and click the Cost > Estimator tab.
  2. Enter your user as a cost estimator.
  3. Open the Part Cost window and query for your manufactured parts in cost set 2.
  4. Click the Part Cost Details tab and enter the cost estimator using the List of Values in the Cost Estimator field.
  5. If you want to assign a part cost estimator to multiple parts simultaneously, open the Part Costs window and query for your parts, right-click, and then click Assign New Cost Estimator and enter the new cost estimator in the Cost Estimator field.

Mass Update of Part Specific Overheads

Purpose: The purpose of this lesson is to show you how to mass update the part specific overheads.

Windows:
Part Specific Overheads
Update Part Specific Overheads

  1. Open the Part Specific Overheads window and query for your parts.
  2. Open the Update Part Specific Overheads dialog box .
  3. Enter the cost element used for the part specific sales overheads, cost set 2, overhead unit Fixed Value per Unit and fixed value change 3. Click OK.
  4. Return to the Part Specific Overheads window and re-query for your parts. Analyze the changes.

Mass Update of Cost Set Estimated Material Costs

Purpose: The purpose of this lesson is to show you how to mass-update cost set estimated material costs.

Windows:
Part Costs
Update Cost Set Estimated Material Cost

  1. Open the Part Costs window and query for your parts and Cost Set 2.
  2. Note the cost set estimated material costs.
  3. Open the Update Cost Set Estimated Material Cost dialog box.
  4. Enter the site, cost set 2 and percentage value change 10. Click OK.
  5. Return to the Part Costs window and re-query for your parts. Analyze the changes.

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