Element-Wise Standard Cost for New Product

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Posted on by Aamirr

Hello,

We are using Dynamics 365 and I want to add the standard cost for new finished good item. The only available option is to setup total standard cost but I cannot modify each element (Material, Capacity & OH). Normally material cost is correct as it is getting fetched from Prod BOM but capacity and overheads costs are the areas where I need to play and I have to have specific costs for each of those. I am able to adjust these by changes in Routing times but that is not possible for all products as major change in timing is causing issue in Scheduler. Is there any way to define the element wise standard cost??

For example I want to set the standard cost as per below:

Material: 50 per Unit

Capacity: 30 Per Unit

OH: 20 unit

Thanks.

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Shauna Langley 899 Moderator on at

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Hi,

You would need to setup a routing for the item that has one work centre costed at 0.30p. See example of work centre below.

The routing would then have the following, set the unit cost on the routing line as it is specific for this example. This work centre could be used for multiple routings as the costing is taken from the routing line and not the work centre itself.

The standard cost worksheet now shows as follows

With the split as follows

When you implement that to the item then you will see those values as separate fields on the item card as well.

Hope that helps,

Shauna

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Aamirr 25 on at

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@Shauna Langley

Thanks for the reply and it has sorted out the Capacity cost issue but still I didn't get that how to adjust the OH portion on this.

In the above example I set up the standard cost at 1.50 where material cost is pulling from the BOM which is correct, and I assigned 30 Cents as capacity cost. For simplicity purpose let's assume I want to assign difference 12 cents as overhead. Is that possible?

Indeed, we calculate the OH/KG of our production whereas our Finished goods are in Each weighing from 14G to 12KG but that can be done once I know how to assign specific OH to each item.
An alternative way would be to have another work center in the same way where I can specify the OH rate in Capacity line but then all entries will fall in Capacity ledger instead of OH ledgers, so I want to avoid it.

Thanks.

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