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Dynamics 365 Community / Forums / Supply chain | Supply Chain Management, Commerce / Cost calculation for S...
Supply chain | Supply Chain Management, Commerce
Answered

Cost calculation for Setup time

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Posted on by Reign 200

Dear Dynamics Community:

I have a production order which has 2 operations (in route) and in the route  I defined both Setup time & Runtime  and its corresponding cost. Please see screen shot below.

Opn1.jpg

Opn2.jpg

I have Also defined Costing sheet for Indirect Labor Overhead.  (also for materials but there is no issue with materials overhead).  Please see screenshot of my costing sheet.

ILOH.jpg

I am facing this issue.  The cost for setup time is divided into 2 since only half of the time was used in the calculation. Another issue is that the Indirect Labor only considers cost in reference to the Run Time.  The calculation not include the setup time at all event though this costing sheet is linked to the cost category where both setup time and run time is  linked linked to the Route.  Please see calculation details form

pricecalc.jpg

Please note that the status of the production order is already Ended and no other issue encountered from Estimate status to Ended status.

Please advise why it happened for the Direct Mfg Cost - Setup component and Indirect Cost also for Setup component.

Thanks,

Reign

 

I have the same question (0)
  • Verified answer
    Rahul Mohta Profile Picture
    Rahul Mohta 21,042 on at

    to include cost or not is determined in route groups

    pastedimage1594720604403v1.png

  • Reign Profile Picture
    Reign 200 on at

    Hi Rahul,

    Thanks, noted for the Route group setting.  Actually my setting already includes both setup and runtime.    The calculation included both Setup and Runtime cost but r for Setup time, the quantity used was split into 2.

    The issue is why the system split the value for SETUP time.  In the screen shots provided, Opn 1 uses 0.35 setup time but the calculation uses 0.17 and Opn 2 uses  0.10 setup time but uses only 0.05.  I would like to understand what have I missed.   For runtime the resulting cost use the time * cost defined in the route correctly.

    When I use another item to produce this issue does not happen.

  • Reign Profile Picture
    Reign 200 on at

    Hi Rahul,

    Upon checking, I found out that Setup Qty is charge once per 1 pc of production.  As setup happens once only regardless of qty to produce.  When I changed the qty of production to 2 hence the setup time was split into 2 and 3 pcs will split into 3.

    Thanks Rahul!

  • Suggested answer
    Rahul Mohta Profile Picture
    Rahul Mohta 21,042 on at

    gr8 it worked

    pls help us marking our responses as resolved

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