How to setup Input unit based for indirect cost

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Posted on by Community Member Microsoft Employee

Hello Guys,

I have added one more indirect cost (Material Overhead) into the costing sheet. And use the input unit based for node type of indirect cost.

Expected outcome

We expect to see the additional indirect cost on the new material overhead cost after do cost rollup.

Actual outcome

The new row of indirect cost has been shown with zero cost and notice in the warning message

"Item XXX did not contribute to indirect cost input unit based"

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Below is my setup on this scenario.

Setup 2 additional cost groups for material cost and in-direct cost.

1. Go to Inventory management/Setup/Costing/Cost Group

2. Create new cost group as 1DM1Pla - RM Plating chemical

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3. Create new cost group as 1CC3Pla - IPO-Plated items

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4. Identify the new cost group 1DM1Pla on the raw material item R8RM01016

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Add 2 additional cost groups in the costing sheet.

5. Go to Inventory management/Setup/Costing/Costing Sheet

5.1 Add new cost group for Direct Materials

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5.2 Add new cost group for in-direct material overhead cost and setup the calculation as the following figures.

General tab

Calculation tab

Run cost roll up to validate the new cost structure.

6. Go to Inventory management/Setup/Costing/Costing Versions

My question is....

Is my setup on this scenario correct or not?

Thank you.

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Answers (1)

alexd 457 on at

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RE: How to setup Input unit based for indirect cost

Hello!

I followed these exact steps and get no error but also no price on the input unit based node of the costing sheet, did you actually get it to work?

Is it possible there's other settings not mentioned here?
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Community Member Microsoft Employee on at

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RE: How to setup Input unit based for indirect cost

Good Morning Everyone,

I have a good news on this issue to share all of you.

Eventually, MS team can help me to resolve the issue.

The root cause is the missing setup default value in the Volume field on the raw material item that used for the calculation on the input unit based.

After I update the default value as 1 in the item master (Manage inventory fast tab > Physical dimensions > Volume) The result of cost calculation is include the new in-direct cost from the input unit based.
Community Member Microsoft Employee on at

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RE: How to setup Input unit based for indirect cost

Hi Ludwig,

Thank you for your feedback.

1. Yes, I can run a new production (later). But at the first step, they <costing team which is my business user> would like to ensure that the new cost price need to be aligned with the new cost price structure. They expect to see the additional cost amount from the indirect cost <material overhead> before go to the next step.

2. I am sure that the costing sheet was saved and active. because we can see new cost group 1DM1Pla and 1CC3Pla in the costing structure as well.

3. Yes, I did it (You can see the figure under calculation tab) . It is active and the amount is setup to 200 Baht.

4. I have had created a premium ticket to MS team for investigating the issue as well.

If I have any update from them I will keep you post for sure.

Thank you.
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Ludwig Reinhard Microsoft Employee on at

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RE: How to setup Input unit based for indirect cost

Hi chanaphat,

I see.

Can you test the following:

1. Can you run a new production with a date later than 11 Nov, which is the date from when the indirect costs became applicable

2. Can you double check that the costing sheet is saved and active

3. That the item R8RM... has an active cost price in your BOM

4. If 1-3 don't help, can you have a look at LCS and check for available hotfixes especially if you run an older AX2012 version.

Best regards,

Ludwig
Community Member Microsoft Employee on at

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RE: How to setup Input unit based for indirect cost

Dear Ludwig,

Thank you for your answer. I try to setup the cost price on R1MF.... and then do the cost roll up again. But the result of indirect cost on the relevant raw material is the same (Zero cost). Although there is no warning message about the cost price of zero on R1MF....

However, I would like to confirm that any zero cost for the route is my setup intention.

Any ideas on this?
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Ludwig Reinhard Microsoft Employee on at

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RE: How to setup Input unit based for indirect cost

Hi,

Please have a look at the first warning message.

There it says that the item R1MF... has a cost price of zero.

There are also warning for the route transactions that seem to have a price of $0.00

Can you check those?

Your other setup looks ok but I think the problem is with the BOM and the route and the cost prices setup for their elements.

Best regards,

Ludwig