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Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / Cost price of producti...
Finance | Project Operations, Human Resources, ...
Suggested Answer

Cost price of production item

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Posted on by td@chsystem.dk 80

Hello,

I would like to get a specification of the cost price of a production item.

I go to the item - choose the tab Engineer and Lines. Here I choose calculation and say ok to "Calculation for an item" - window.This shows me the price of the item on the "Active prices" tab but no break-down of the cost price. If I choose the "Pending prices" tab I can see a different price and if I choose "Complete" I get the breakdown but this cost price is not the right price.

If I go to the Production menu and choose "Cost estimates and costings" of the Reports menu I get a breakdown of the cost price for the production order but only for the first level of the BOM - the BOM has several levels so I cannot see the breakdown all the way through. Then I need to run the report several times.

Can you help me to find the cost breakdown specification ?

Best regards

Thomas Dethlefsen

I have the same question (0)
  • Suggested answer
    guk1964 Profile Picture
    guk1964 10,888 on at

    What costing method? Standard cost has to be rolled level by level.

    Please check these steps:

    Product information management > Products > Released products.

    Select product BOM

    On the Action Pane, click Manage costs.

    Click Item price.

    Click Calculate item cost.  click the ellipsis (...) to see this option in the top menu.

    In the Costing version field, enter or select a value -  Planned cost type with  Explosion mode  Multilevel.

    (The Multilevel explosion mode is for planned costs and simulations. It is not used for standard cost.)

  • td@chsystem.dk Profile Picture
    td@chsystem.dk 80 on at

    Hello,

    Thank you for your reply.

    When I go to the BOM - Manage costs - item price - all the items in the menu are inactive so I cannot choose "Calculate item cost".

    Best regards

    Thomas Dethlefsen

  • guk1964 Profile Picture
    guk1964 10,888 on at

    Have you enabled enable purchase price content? -  define a BOM calculation group that contains a cost price model for the item’s purchase price, then assign the BOM calculation group to purchased items and then use a cost price model for the BOM calculation group when you perform BOM calculations that use planned costs to calculate the sales price of manufactured items.

    This is a useful post www.axpulse.com/.../

    This is also worth a view if you are looking at BOM costs. organicax.com/.../

    docs.microsoft.com/.../simulate-cost-changes-costing-version-planned-costs

  • td@chsystem.dk Profile Picture
    td@chsystem.dk 80 on at

    Hello,

    I have tried the following:

    Under Costing version setup the Block activation was set to "Yes". If I change it to "No" and press "Activate" from the menu I get a window where I choose Activate Purchase price and Active Cost price.

    I go to the BOM and make a calculation for an item. Then the menu on Active prices is no longer inactive. Unfortunately the new cost price is the same is for the pending prices which is wrong. A lot of the unit cost prices are not included in the cost calculation - they do have a purchase price on the item card.

    Why are these unit cost prices not included in the cost calculation for the BOM ?

    Best regards

    Thomas Dethlefsen

  • guk1964 Profile Picture
    guk1964 10,888 on at

    What is your fallback principle setting? If 'None' then change it to 'Active'.

    Is your inventory close up to date?

    From where do you run the calculation item price or costing version? Use the Costing version setup form (or the Costing version maintenance form) in order to calculate costs for all manufactured items or for selected items, or for updating items on a where-used basis. The Calculation form inherits the costing version, The calculations assume the use of the active BOM version and route version for a manufactured item (and the related site, date, and quantity), unless a manufactured component has a specified sub-BOM or subroute.

  • td@chsystem.dk Profile Picture
    td@chsystem.dk 80 on at

    Hello,

    My fallback principle is Active and I have issued a separate Fallback costing version with same settings as for the General costing version.

    The stock was closed as per October 31, 2019 and the production order was completed/booked on September 18, 2019.

    I run the calculation from Engineer - Lines - Calculation and the settings are:

    Cost price model: Calculation group

    Purchase price model: Item purchase price

    Explosion mode: Multilevel

    Fallback principle; Active

    Item procured using: Works order

    When I run it I get the error: Fallback version should not be specified for fallback status none/current active

    Best regards

    Thomas Dethlefsen

  • guk1964 Profile Picture
    guk1964 10,888 on at

    See this post https://dynamicsuser.net/ax/f/users/81547/fallback-costing-version though it refers to Ax 2009 the situation is similar.

  • Suggested answer
    td@chsystem.dk Profile Picture
    td@chsystem.dk 80 on at

    Hello,

    I have found the solution. I was looking in the Product information management menu under the BOM but the right place is in Stock management - Setup - Costing versions. Here I have completed a calculation and activated all the prices. I needed to run the calculation again to get the top level of the BOM to show the right price and activate the prices again. Now I can see the breakdown of the price on the item - manage costs - item price - Active prices - Complete.

    On the production order I guess it is not possible to get a breakdown of the price - here I can only see the breakdown for a single BOM level.

    Thank you for the help.

    Best regards

    Thomas Dethlefsen

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