Calculate Cost for Single Part, One Level

Explanation

This activity can be used to calculate costs for one level for an inventory part. 
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. 

When calculating costs, the costs set-up throughout the system are gathered and attributed to the correct part. When calculating the part costs for a cost set, only the level cost for the selected part is calculated. Total level cost does not include accumulated component material costs. No costs for any underlying structure will be calculated. However, already calculated costs of the components one level below, will be rolled up for one level.

This activity can be performed through One Level Part Cost Calculation in Part Cost and Part Costs windows.

If by-products exist, the cost of the primary product is calculated in one of the following ways. Either the costs of the by-products are subtracted from the calculated costs to determine the cost of the primary product, or the cost of the primary product is determined using by-product cost distribution. If you use by-product cost distribution, then the by-product cost distribution factors for each of the by-products identify how much of the calculated costs are subtracted. The remaining costs are used for the cost of the primary product.

If material overheads are defined in part overheads, the material overhead is 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 costs 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:

• Cost sets must have been defined.
• Inventory parts must have been created.
• 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 the 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:

• Costs will be calculated for a single part at one level, and the results will be saved in the selected cost set for update and comparison purposes.
• Only the level cost for the selected part will be calculated. Costs for an underlying structure will not be rolled up.
• If 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 field Cost Set Estimated Material Cost.
   

Window

One Level Part Cost Calculation
Part Cost
Part Costs

Related Window Descriptions

One Level Part Cost Calculation
Part Cost
Part Costs

Procedure

To perform this activity in the One Level Part Cost Calculation window, follow these steps:

1. Open the One Level Part Cost Calculation window.
2. In the Site field, click List and select the site for which you want to perform the cost calculation.
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 include the alternative of structure and routing, click List in the Struct. Alt. and Rout. Alt. fields and select the alternatives.
6. In the Stop Roll list, click either Not Stop Cost Rollup or Stop Cost Rollup.
7. If serial numbers are used, click List in the Effective Serial No field and select the serial part for which the calculation should be performed. If serial numbers are not used, you can specify the date on which the structure and routing should be valid in the Effective Date field.
8. Click OK. 

To perform this activity in the Part Cost or Part Costs window, follow these steps:

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