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Finance | Project Operations, Human Resources, ...
Answered

Cost Calculation on All Parts

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Posted on by 52
We are a standard cost environment and we havent updated our standard costs for existing parts in quite some time, so we are looking to do a full cost roll (I'm sure the cost of purchasing parts has gone up and we havent re-costed the higher level assemblies). But I'm not understanding the cadence of how that should occur.
 
We have bills of materials with several layers and many shared components across those a lot of BOMs
 
I was initially thinking we would need to do a costing version/cost calculation on purchased parts, activate those, and then do another cost calculation on assemblies. But if that's really required, you would think every layer of the BOM would have to be activated in order to apply to the next level up. I was hoping doing a cost calculation for everything at once would take the pending costs of the lower level items into account to come up with the pending costs of the high level assemblies.
 
Am I thinking about this wrong or is it not normal to do a full cost roll on all parts in the system at one time?
 
Thank you
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  • Verified answer
    BillurSamdancioglu Profile Picture
    20,825 Most Valuable Professional on at
    HI,
     
    Yes actually thıs can be managed by the system. Thıs ıs why the calculatıon runs more than once.
  • Verified answer
    iosono150 Profile Picture
    52 on at
    So if I just have a new costing version (Type = Standard Cost; Cost Price Model = "Version Cost Price"; Purchase Price Model: "Item purchase price"; Fallback principle: "None")
     
    And then click Calculation and set the "Site", and do nothing to "Records to Include", that will run multiple calculations in the background and do purchased parts > level 1 of BOMs > level 2 of BOMs > all the way to the top?
  • Verified answer
    iosono150 Profile Picture
    52 on at
    "HI,
     
    Yes actually thıs can be managed by the system. Thıs ıs why the calculatıon runs more than once."
     
     
    Is that an automatic process or are there setups you need to do to have the system run more than once up the BOM?
     
    Thank you

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