Possibility of Multilevel Standard Cost Roll Up AX 2012

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Hi,

There seems to be a restriction in cost calculation of Costing Type Standard Cost in AX. The explosion only happens for level 1 ignoring any level below that if the Line Type on the BOM is either 'Item' or 'Pegged supply'. Since ours is a manufacturing company with more than 10 levels of BOMs and not all of them are Phantom, AX 2012 forces us always search for all the Pegged Supply or Item Type BOM line items at different levels with respect to a top level Item and roll up the cost separately for them. Once that goes through fine, only then we will be able to roll up the Top level item. This is an extremely exhaustive process and one that does not make sense at all. Is this how the system designed? If yes, then does anyone have any workarounds or suggested customizations to allow us to Roll up the BOM cost once for all Line types in a Top level BOM? Also, I think this is extremely restrictive from Microsoft especially in an organization where there are numerous BOM changes which will never result in accurate costing for any given Top level Item. I know that running Planned cost does a complete Multilevel calculation but unfortunately that cannot be activated if the Item model group is Standard Cost.

Thanks

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Weaveriski 23,618 Moderator on at

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It is the way it is designed I am afraid, it relies on lower level BOM's being costed at a standard level. I would question that if you have "numerous" BOM changes why you have opted for standard costing. The idea is to fix a cost for a period of time, traditionally the financial year and then report on variances. In this manner your sub-assemblies and items have an agreed cost, the cost is rolled up on construction and then used in higher level constructions.

From the costing version that you have set as standard you can run a calculation from there and it will run through all items at a single level and calculate the BOM prices - this is one where you can do everything, but there is no cascade down the levels as you want. I presume you have looked at this and are not doing it from the item?

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Community Member on at

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Thanks Steven for confirming my fears. To answer your question, I am actually doing calculation from the item but I have also tried it directly from the Costing version but the problem still remains, as I think that the Calculation at the Company level takes place in an Alphabetical order or reverse (pls confirm) and does not follow a Bottom-Up approach in terms of cost calculation. So, if the system encounters a Top level item in its calculation and the below level Pegged Supply Items with respect to that Top level have not been calculated before that, then the cost for that Top level is still inaccurate.

Having said that I have tried to filter the calculation criteria by the Level field in the Item table. So, I have entered the criteria as "10,9,8,.....,1,0" which ensures that the calculation for all the lower levels items are done first and the Pending cost is created. So any higher level assembly when it encounters a lower level pegged supply item then the latest Pending cost is available to be picked up.

But the issue of calculating the accurate cost for a given Top level item still remains as I cannot possibly do a Company wise roll up all the time which is extremely time and resource consuming just to get the cost for a given Top level.

Any other workarounds suggested would be helpful.

Thanks

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Weaveriski 23,618 Moderator on at

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There are no other workarounds as standard I am afraid.

If you categorised your items you could filter the run, but it is the same as the level field. This is by level roll up.

As stated this is usually a several month process in the assessment of the new standard cost for the next financial year - if you are always updating your standard cost you should review the decision to have gone with the standard costing method and what it gives you, as you constantly recalculating is akin to actual cost, not the principles of standard.

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Max2012 on at

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As others have said, The standard cost rollup functionality is not multi-level. You need run it for all items. You also should recalculate the bom levels (there a periodic function for that). The code is sorting by level. I also usually set the fallback method to active.

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Community Member on at

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Hi Faheem,

I also have the same issue about this. My workaround is to have two versions of costing version, one Standard Cost and the other is Planned Cost. The idea is that the cost simulation and calculation will be running on Planned Cost version. Once the price on Planned Cost is verivied and approved, we need to export the cost to Standard Cost version, and activate it there.

Hope this helps

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smcgrath 10 on at

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Thanks Albert. We are going to use this concept for mass cost roll of newly created items.

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Ariftec 5 on at

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Can you tell me is AX 2012 R2 or R3?

There is a fix issued by Microsoft.

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smcgrath 10 on at

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Hello. We are using Microsoft Dynamics 365 for Finance and Operations Online (10.0.4). To be clear, the mass standard cost update works fine for us. The issue is calculating item cost from the Released Products Screen as new items are created daily. That feature does not do a mutli-level, bottom up cost roll. Appreciate if you have a solution other than creating a 2nd standard cost version to allow the mass cost update to run on the 2nd cost version.

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