Calculate Cost for Single Part, All Levels

Explanation

Use this activity to calculate costs for a single part at all levels. Note: You cannot perform a cost calculation for cost set 1. This optional task is to be performed by a system administrator or equivalent person.

Calculating part costs on all the levels means that costs for parts at underlying structures are considered as well as the costs for the selected part. When calculating the costs, the costs set up throughout the system are gathered and attributed to the correct part.

You can enter a specific version (alternative) for a part structure and routing. You can also define parts so that the calculation is stopped and costs are not rolled up. Component part costs will be updated only if the Struct.Alt. and the Rout.Alt fields are set to the default value; indicated by an asterisk(*)

This activity can be performed in the All Levels Part Cost Calculation, Part Cost and Part Costs windows.

If by-products exist, you can distribute the costs between by-products and the primary product. When calculating the product cost, if you use by-product cost distribution, the sum of the specified percentage of each by-product for this item is calculated. The remaining percentage will be calculated from the primary product.

If material overheads are defined in part overheads, material overheads are added to to the parent level in the cost structure. When material and general overheads are connected to a part, and the part cost record has a template which consists of a cost bucket that is 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.

Prerequisites

This activity has the following prerequisites:

• The cost set for which you are performing the calculation must have the costs defined.
• If by-product cost distribution is used, a structure with at least one by-product must exist.
• Calculation of costs using by-product cost distribution will require that the by-product cost distribution basic data has been entered for the manufacturing structure using the Product Structure, Recipe Structure, or Configuration Structure window. 

System Effects

As a result of this activity:

• The costs for a single part on all levels are calculated and the results are saved in the selected cost set.
• Cost comparisons for a part can be calculated across different cost sets. This allows you to determine the parts that should be transferred into cost set 1 for the purposes of standard costing.
• If the by-product cost distribution is used, the cost will be determined for the primary product by subtracting the costs distributed among the by-products, otherwise, the costs of the by-products, if any, will be subtracted.
• If the Copy Estimated Material Cost from Inventory Part check box is selected, estimated material cost in inventory part will be taken as the estimated material cost for the part for the cost set and will be copied in to the Cost Set Estimated Material Cost field.

Window

All Levels Part Cost Calculation
Part Cost
Part Costs

Related Window Descriptions

All Levels part Cost Calculation
Part Cost
Part Costs

Procedure

To perform this activity in the All Levels Part Cost Calculation window:

1. Open the All Levels Part Cost Calculation window.
2. To change the default site, click List in the Site field and select the site whose costs you wish to copy.
3. In the Part No field, click List and select the part for which the calculation should be performed.
4. In the Cost Set field, click List and select the cost set for which you want to perform the cost calculation.
5. To copy structure alternates, click List in the Struct. Alt. field and select the alternative.
6. To copy routine alternates, click List in the Struct. Alt. field and select the alternative.
7. In the Stop Roll list, click either Not Stop Cost Rollup or Stop Cost Rollup.
8. To specify the serial part for which the calculation should be performed, if serial numbers are used, click List in the Effective Serial No field and select the serial number.
9. Click OK. 

To perform this activity in the Part Cost or Part Costs window:

1. Open the Part Cost or Part Costs window.
2. Query for the part for which you want to perform the cost calculation.
3. Right-click the header and then click Cost Calculations/All Levels Part Cost Calculation. The values from the selected part will be shown in the All Levels Part Cost Calculation dialog box.
4. Click OK.