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Small and medium business | Business Central, N...
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BOM Cost Shares – Capacity Cost Calculation Issue with Work Center Unit of Measure

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Posted on by 6

Hi everyone,

I'm encountering an issue with the capacity cost calculation in the BOM Cost Shares when using a work center that has its Unit cost calculation set to "Time".

It seems that the cost is calculated correctly only when the work center's capacity unit of measure is set to "HOUR". However, if the unit of measure is set to something else, like "MINUTE", the system appears to multiply the capacity in minutes directly by the cost per hour, which results in an incorrect cost.

The production route of the product is as follows:

For operation 020, the work center card is as follows, where it can be seen that its capacity unit of measure is set to MIN and its direct unit cost is set to 5 € per hour.

The capacity units of measure have been defined as follows:

The BOM Cost Shares of the product are as follows, where it can be seen that the capacity cost for operation 020 is calculated as 60 MIN × 5 €/HOUR = 300 €, instead of 60 MIN × (5/60) €/MIN = 5 €, which would be the correct result.

 

Has anyone else experienced this behavior? Is this a known limitation or a configuration issue? Any insights or workarounds would be greatly appreciated.

Thanks in advance!

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  • Suggested answer
    Gregory Mavrogeorgis Profile Picture
    288 on at
    BOM Cost Shares – Capacity Cost Calculation Issue with Work Center Unit of Measure
    Hi,
     
    you’ve run into a unit mismatch, not a bug.
    In BC, when a work/machine center’s Unit cost calculation = Time, the Direct Unit Cost is per the work center’s Capacity UoM.
    So if the work center’s Capacity UoM = MIN, BC expects the Direct Unit Cost in €/MIN.
    You entered 5 €/HOUR while the UoM is MIN, so Cost Shares does: 60 (MIN) × 5 (€/MIN) = 300 €.

    Fix options
    • Keep UoM = MIN → set Direct Unit Cost = 5 / 60 = 0.083333 €/MIN (and adjust Overhead Rate if you use it per minute). Recalculate Cost Shares.
    • Prefer hourly costing → change the work center’s Capacity UoM to HOUR and keep Direct Unit Cost = 5 €/HOUR. (BC will convert routing times from minutes to hours automatically.)
    Tips
    • Make sure all work/machine centers follow the same convention (all HOUR or all MIN) to avoid surprises.
    • After changing costs/units, run your Costing Version → Roll Up and re-open BOM Cost Shares.
    • Lot size and setup spreading can also affect totals, but the big driver here is aligning UoM ↔ cost.
     
    If you found this helpful please mark it as verified
  • MC-26061828-0 Profile Picture
    6 on at
    BOM Cost Shares – Capacity Cost Calculation Issue with Work Center Unit of Measure
    Thank you very much for your response, Gregory Mavrogeorgis.
     
    The issue seems to stem from the Spanish translation of "Unit Cost Calculation," where "Time" has been translated as "Hora" instead of "Tiempo." This creates confusion, as "Hora" refers specifically to an hour, while "Tiempo" more accurately reflects the intended meaning of "Time" in this context.

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