Using Standard Costing

This topic describes how to define and use standard costs for production items. These costs include raw materials, overheads, and other costs associated with production. Once defined, you can propagate those costs for use by other organizations within your legal entity and determine the appropriate costs to use for accounting.

Individual ingredient and resource costs must be rolled-up to reflect the total standard cost of the item that is produced. This procedure is detailed in the Standard Cost Rollup discussion.

This chapter covers the following topics:

Requirements

Can I maintain cost formulas and routings?

Yes. You can create cost formulas and routings. These are by the Cost Rollup process to calculate costs. Create a cost formula and routing by copying the production formula and routing and giving it a different name or version.

Maintaining Cost Formulas and Routings

During production, you can adjust ingredients, products, or byproducts in the formulas or adjust the routing parameters. These adjustments are made to reflect the production changes in the plant. You can retain the product costs based on the standard proportions in the formula and the standard usage data in the routing that were determined at the beginning of the month or the year.

You can create the cost formulas and routings. Create a cost formula by copying the production formula and giving it a different name or version. If you use routings, then create a copy of the routing that is used for production. Create a recipe and associate the new formula version and routing version to that recipe. Lastly, create a validity rule as the Costing Use validity rule.

After the cost is calculated and finalized, freeze the cost along with the associated formula and routing to maintain a complete audit trail. If only one formula and routing are used, then the formula cannot be modified for production. Only cost formulas and routings are frozen, if they were used. You can adjust the production formulas and routings. The Cost Rollup process considers the Costing Use recipe first over the production recipes. You do not need to set up a costing recipe in addition to the production recipe for all products.

If required, set up only one Costing Use recipe for a product or for a set of products. Set the GMF: Use Only Costing Validity Rules for Cost Rollup profile value to Yes, so that the Cost Rollup process considers only the costing use recipes.

Is the Standard Quantity on the Recipe Validity Rules window used in the Cost Rollup process?

Yes. The Cost Rollup process uses the Standard Quantity specified on the Recipe Validity Rules Details window to determine ingredient and product proportions for cost calculation.

Using the Standard Quantity on the Recipe Validity Rules window in the Cost Rollup process

The Cost Rollup process uses the Standard Quantity specified on the Recipe Validity Rules window to determine ingredient and product proportions for cost calculation.

If the formula product quantity does not match the standard quantity for a product, then the formula is scaled to the standard quantity and then the rollup calculations are performed. The standard quantity represents the standard or the unit size of the product used for cost calculations. Therefore, set up the standard quantity correctly; it cannot be zero. If the standard quantity is zero, then scaling is not performed and the Cost Rollup process displays errors.

Can I specify multiple validity rules for a product? Which validity rule does the Cost Rollup process choose?

Yes. You can specify multiple validity rules for a product. The Cost Rollup process selects the most appropriate validity rule as described in the subsequent paragraphs.

Multiple Validity Rules

The Cost Rollup process selects the most appropriate validity rule using the following criteria:

The validity rules are further analyzed for an item as follows:

If all of the above criteria match, then the most recently created validity rule is selected.

Are resource scale types considered in resource cost calculations?

Yes. In Standard Cost Rollup, the resource costs are calculated from the Routing, Step, and Operations. The resource cost calculation depends on the resource scale type set up at each operation level.

Resource Cost Calculations

In Standard Cost Rollup, the resource costs are calculated from the Routing, Step, and Operations. The resource cost calculation depends on the resource scale type set up at each operation level.

The resource scale types are:

The resource cost calculations for the three scale types are as follows:

Linear Scaling

(Resource Unit Cost = 1 / Standard Qty) * [(Total Output Qty / Routing Qty) * (Step Quantity / Process Quantity)] * Resource Count * Resource Usage * Resource Nominal Cost * Activity Factor

Fixed Quantity

Resource Unit Cost = (1/Standard Qty) * [1] * Resource Count * Resource Usage * Resource Nominal Cost * Activity Factor

Fixed By Charge

Resource Unit Cost = (1/Standard Qty) * [Number of Charges] * Resource Count * Resource Usage * Resource Nominal Cost * Activity Factor

Does cost rollup consider overrides at the validity rule level?

The Cost Rollup process considers all the overrides at the validity rule level in the cost calculations.

Overrides of various parameters at the validity rule level

The Cost Rollup process considers all the overrides at the validity rule level in the cost calculations. The process loss and step quantities can be overridden at the validity rule level. These are preferred over the values set up in the routing and operations.

Does standard cost handle byproducts in Cost Rollup?

Yes. The byproduct costs are either added or subtracted from the total ingredient and resource cost to calculate the final cost of products.

Handling byproducts in Cost Rollup

The byproduct costs are either added or subtracted from the total ingredient and resource cost to calculate the final cost of products. If a byproduct is sold, then set a cost for the byproduct, so that it reduces the total cost of the product. If you spend money to dispose off the byproduct, then enter a negative cost for it and it increases the product proportionately to reflect this affect.

Why Expense Allocation Variance (ALV) accounting entries are created, if the product uses standard cost?

Expense Allocation Variance (ALV) entries get created during batch closure, if the product uses standard cost and if one of the Cost component class of the product/ingredient costs is GL Expense Allocation.

The OPM Financials application currently does not allow the setup of GL Expense Allocations for Standard Costing. The only possibility by which it can be present as the cost component is through Copy Cost Function. If you copy the Actual Cost with GL Expense Component Class to Standard Cost Method, this cost component is visible at This Level Cost. Once expense component class is present in the cost of an item (in a batch) then batch close event can generate ALV variance, if there is a difference in the actual quantity on the batch compared to planned quantity of the costing formula. ALV is computed by multiplying GL Expense Component Cost with the difference between actual quantity on the batch and the planned quantity on the formula (after scaling).

Understanding Standard Cost

The standard cost of a product depends on the combination of:

Any applicable overrides that are identified at the recipe level for the formula and routing combination.

Standard costs are predefined costs that are set up for ingredients and resources and are calculated for products based on formulas, routings, and overheads. Define the cost of ingredients in a specific organization for a cost period. This cost information remains static during a cost period.

Factors Affecting Standard Costs

The factors affecting standard cost of product are:

Recipes

Recipes contain the minimum set of information that uniquely defines the manufacturing requirements for a specific product. Recipes provide a way to describe products and how those products are produced. A recipe entity standardizes the structure of all information that defines the production of one or more products. Recipes have:

To provide flexibility, formulas and routings are built independently. They are linked using a recipe that has validity rules. Multiple formulas can use the same routing. One formula can be associated to several different routings.

Validity Rules

Validity rules specify the circumstances under which the recipe can be used. One or more validity rules can be associated with each recipe. A validity rule determines when, where, and under what circumstances a recipe can be used to create a batch, to plan with, or base standard costs upon. Validity rules also determine which plant (inventory organization) the recipe is valid for. Thus, recipe validity rules let you specify under which condition and for what purpose (production, planning, costing, regulatory, or technical) a particular recipe can be used in order to maximize raw materials and leverage their inherent variability.

Validity rules provide a combination of material quantities and a range of effective dates used by production and planning in one or more specified organizations.

The Validity Rule hierarchy lets the application to use most recently created rule instead of the most recently updated rule.

In the OPM Product Development application, recipe validity rules are entered with the appropriate recipe use data. A Validity Rule indicates the type of a Recipe (used for Production or Costing or Planning), the effective start and end dates between which a particular Recipe can be used, the Min and Max quantities of production that can be done using the Recipe, a preference to indicate which Recipe is preferred among multiple valid Recipes and a status. The Cost Rollup process considers recipes that are set up for costing and production. Recipes, validity rules, formulas, routings, and operations all have a new status attribute. The Cost Rollup process selects statuses that fall within the following categories: Approved for Lab Use (only for Lab Cost Rollups that are run for a Lab Cost Type), Approved for General Use, and Frozen. The Cost Rollup process determines whether to use a lab recipe based on the specified cost type for which the cost rollup is run. This process takes precedence over the other recipes during a Lab Cost Rollup. Refer to the Oracle Process Manufacturing Product Development User’s Guide for details on formulas and recipes. Refer to the "Defining Cost Types" topic.

Using Lab Recipes for Simulations

The Usage type for a cost type lets you indicate if the cost type is identified for the lab use. The default value is general use which when selected considers only the production and costing recipes. If the usage field is set to Lab use, then the Cost Rollup process uses the lab recipes along with the product or costing recipes and lab use takes precedence over other recipes.

To create a new recipe, you can specify product code and quantity, or formula number and version. You can also specify a routing in the recipe. You can override routing attributes such as Capacity, Activity Factor, Charges, and Resource Usage for each recipe you define. If a recipe is set up for Automatic Step Quantity Calculation, then ensure that the formula material is properly associated to each appropriate routing step.

Formulas and Routings

Formulas are lists of ingredients and products with their associated quantities. Production batches are based on formulas defined in Product Development. Formulas are also used for planning, managing costs, and regulatory compliance.

Routings are defined in terms of operations. You enter and maintain the sequence of operations and step quantities used in a routing. You define multiple versions for a routing that makes the same product to accommodate for several production lines with differing characteristics. Since routings and operations are modeled into the structure of a new recipe, several attributes are defined at the recipe level, including planned process loss, step quantity, capacity, and activity factor.

Since a single product can be associated with several routings on the manufacturing floor, it can have different costs depending on the specified routing. Product Development tracks the route that the ingredients follow, thereby tracking appropriate costs.

Material Scaling

You can scale formulas up or down by input or by output:

In order for this approach to be successful, you need to specify whether the quantities of each item in the formula are fixed or scalable. Proportional scaling is the least complex scaling type since the given and calculated factors are applied appropriately to the scalable item inputs or outputs. In order to scale formulas properly, specify whether the ingredients need to be increased using fixed or proportional scaling.

The following lists the types of formula scaling available in Product Development:

The following lists the Contribute to Yield types available in Product Development:

Process Loss

The Cost Rollup process considers the process losses defined. A process loss is a percentage established at the recipe level to indicate any loss of materials that occur during the various stages of routing. The Cost Rollup takes the process loss value defined at the Plant/Lab level and the validity rules level. The values for the process loss, if defined at the validity rule level will take precedence. Cost Rollup does not take into account the value defined at the Recipe Header level. The loss percentage is used to calculate the actual ingredient consumptions, and thus affects the material and resource unit costs rolled up to the product. Refer to the Oracle Process Manufacturing Product Development User's Guide for more details on process loss overrides.

All linearly scaled ingredients are increased by:

Ingredient Quantity / [1 - (Process Loss / 100)]

Activity Factors and Charges

The activity factor indicates the number of times an activity is performed. The factors are applied to resource usage when calculating resource costs.

Charges are determined by capacity and relates to the number of times a routing step or an activity needs to be performed. This is specific to a recipe. The OPM Product Development application includes a new resource scaling type, Fixed by Charge. This scaling type determines if the resource cost is fixed by the number of charges. The Cost Rollup process considers the new scaling type and computes the costs accordingly. Refer to the Oracle Process Manufacturing Product Development User's Guide for details on the Fixed by Charge scaling type.

The Cost Rollup process uses the fixed quantity scale type in the cost calculations.

Resource Cost Calculation

The OPM Product Development application provides the flexibility to override the operation throughput, process quantity, and resource usage at the recipe level. The Cost Rollup process supports these overrides. The Resource Usage is calculated based on the total output rather than the product itself. Refer to the Oracle Process Manufacturing Process Execution User's Guide for more details on the resource usage.

Validity Rule Overrides

You can now override the planned process loss at the validity rule level. The planned process loss value is taken from the validity rule, if available. Otherwise, it is calculated from the recipe along with the theoretical loss table for the validity rule standard quantity. The Cost Rollup process considers the planned process loss override and uses them cost calculation.

Support for Item Substitutions

A plant can modify its formulas to achieve certain product specifications such as replacement of its items. These substitutions are based on a prescribed list of alternative item replacements with usage controlled by defined start and end dates.

This profile option lets you specify whether to use the original formula item or the substitute item in the product cost calculations. This profile option has the following values:

This profile is available at the Site, Responsibility, and Application levels.

When the substitute item option is selected for calculating costs, the Cost Rollup process uses the costing period start date or end date to derive the most appropriate substitute item based on the selected profile value.

The substitute item inherits the scaling attributes of the original item (the replaced item). If the original item is integer scaled, then the scale multiple is converted to the appropriate unit of measure.

The substitute item quantity is calculated by multiplying the original item quantity in the primary unit of measure by the replacement ratio. The replacement ratio is calculated by dividing the replacement quantity by the original item quantity.

Refer to Oracle Process Manufacturing Product Development User's Guide for more details on setting up and using item substitutions.

Defining Standard Item Costs

Use the Item Costs window to define the cost for ingredients or inquire the cost of producing a product or intermediate. The cost is based on the following parameters:

The derived cost is per unit of the item being costed. For example, if you are costing the product Blue Paint, which has an inventory unit of measure as gallons, the cost entered or calculated is that to produce one gallon of blue paint.

The cost entered or calculated is shown in one unit of item's unit of measure. The total cost to produce the item is shown in the Item Costs window. A breakdown of costs is shown in two tables located in the lower portion of the window. Costs are broken into two levels. All costs carried over from previous levels of production are shown as Lower Level costs. All costs added at the current level of production are shown as This Level costs. A total cost for each level is shown at the top of each breakdown.

Each cost is associated with the component class assigned to the item, ingredient, or resource used. If more than one item with the same component class and analysis code is used at the same level in the production process, the cost for each of those items is summed and listed under on the same line.

Purchased raw materials are entered only in the This Level. Produced items can have item costs in both levels. The Lower Level summarizes costs from all intermediates regardless of the number of levels.

Prerequisites

The following information is required on the Item Costs window, and must be set up prior to using this window. The application where each field is set up is shown in parentheses if they are set up in other applications:

To define item costs:

  1. Navigate to the Item Costs window.

  2. Enter the Item for which you are entering or inquiring costs.

  3. Enter a valid Calendar code.

  4. Enter a valid Period code within this calendar.

    Note: You can enter costs only for open periods. You can add but you cannot make changes to item costs in a period that has been frozen through a successful final cost update process. Also, you cannot add new costs or update costs in a period that has been closed.

  5. Enter a valid Cost Type code. Only standard cost types are available.

  6. Indicate whether the costs are Frozen or not. You cannot edit this field.

  7. Total Cost displays the item's total cost in the legal entity currency in the item's primary unit of measure.

This Level

  1. This Level Cost displays the sum of this level costs cost component values.

  2. Usage Type indicates the classification of the component class associated with the cost for that line. Usage type has one of the following values:

    • Material

    • Resource

    • Overhead

    • Expense Allocation

    • Std Cost Adjustment

      While entering standard costs, only cost component classes of usage type Material or Standard Cost Adjustment can be entered.

      First, select the usage type and then only select a cost component to enter the costs.

  3. Enter a Component Class Code.

  4. Description displays the description of the Component Class Code.

  5. Enter an Analysis Code.

  6. Enter the cost of each component in Component Cost.

  7. Cost Origin displays the origin of the cost data. Indicates if the cost is calculated or derived using one of the following methods:

    • Carried over from the previous period by actual costs

    • Copied using the Copy Cost process

    • Loaded through the Costing APIs

    • Merged lower level costs with this level costs during the Copy Cost process

    Lower Level

    The meaning of the fields are the same as that in the This Level but the costs are shown for display only. Lower Level costs cannot be entered directly. Cost Rollup calculates the costs for products and the material costs from formulas are shown at the Lower Level.

Item Costs Window Menu Features - Actions Menu

Defining Recipe, Routings, and Formulas

You define recipe, routings, and formulas in the OPM Product Development application. Refer to the Oracle Process Manufacturing Product Development User's Guide for more details.

Defining Resources and Resource Costs

You define resources in OPM Process Planning. Refer to Oracle Process Manufacturing Process Planning User's Guide for more details.

Refer to "Costing Setup" topic for more details on defining resource costs.

Defining Rollup Source Organizations

When calculating costs using Cost Rollup, use the item costs from different organizations to reflect how the ingredients are sourced from the organizations for production. Indicate the cost from each organization to arrive at a final cost to produce the end product.

For example, if you normally pull a particular item from a single organization, you indicate that 100% of the cost for the item should be costed from that organization. If however, half of the time you draw the items from one organization, and the other half of the time you draw from a different organization, you can indicate to use 50% of the cost defined from each organization. Another example could be that you have an organization within 50 miles of the distributor of one of your raw materials. Due to the proximity of the organization, the shipping costs, the cost of the raw material from that organization would be significantly less than in another organization located 2,000 miles away from the distributor.

Note: The cost rollup requires a default rule by organization, calendar, and period. This record shows blank in the Cost Category and Item fields indicating that it is not specific to any item or cost category but rather applies to all items for which a specific sourcing rule is not set up.

To define rollup source organization:

  1. Navigate to the Rollup Source Organizations window.

  2. Displays the egal entity for which you are defining the resource cost in the Legal Entity field.

  3. Displays the organization for which you are defining source inventory organization cost allocations in the Organization field.

  4. Enter the cost calendar for which you are defining source inventory organization cost allocations in the Calendar field.

  5. Enter the period for which you are defining source organization cost allocations in the Period field.

  6. If you are defining source organization cost allocations for all items assigned to a particular item cost category, enter the cost category in the Cost Category field. Otherwise, leave this field blank and complete the Item field to define source organization cost allocations by item.

  7. If you are defining source organization cost allocations for one item, enter the item code in the Item field. You can leave this field blank, if you are entering the Cost Category.

    Cost categories are associated with items on the Items window in Oracle Inventory.

Source Organizations

  1. Enter the code for the organization from which you are sourcing raw material costs in the Inventory Organization field.

  2. The organization description displays automatically in the Description field.

  3. Enter the percent cost allocation to be used from this organization in the Allocation % field. The allocation percentage must add up to 100, otherwise you cannot save the record.

Running Standard Cost Rollup

Describes the Cost Rollup process.

Prerequisites

Set up the following prior to running the cost rollup:

To run the standard cost rollup:

  1. Navigate to the Cost Rollup window.

  2. Select Start from the Cost Rollup window Actions menu. The Start Cost Rollup window displays. You can begin the rollup for a specified calendar, period, and cost type.

Selection Criteria

  1. Enter the Legal Entity linked to the calendar. Transactions for all organizations linked to this legal entity are selected and included in the Cost Rollup process.

  2. Enter the code for the Calendar for which the cost rollup will be processed. Costs are rolled up for the legal entity and the cost type linked to this calendar. Required.

  3. Enter the Period for which costs will be rolled up; this period defines the start and end dates for selecting all validity rules. This period in the cost calendar must be either open or frozen (a closed period cannot be entered). Required.

  4. Period Status is the status of the calendar period (either Never Opened, Open, Closed, or Frozen) displays. You cannot edit this field.

  5. The cost type linked to the cost calendar displays in Cost Type. Only standard cost types are allowed.

  6. Click Single Level, if a single level rollup is to be performed for the item to be entered.

  7. Enter a range of Inventory Organization (From and To) to run the cost rollup process. For running the cost rollup for a single inventory organization, enter the same value in the From and To. To run the cost rollup for all inventory organizations, leave the inventory organization From and To blank. For open ended range, if you specify From inventory organization and leave the To blank, then the cost rollup considers inventory organizations starting from the specified From value and beyond. Similarly, if you specify to inventory organization and leave the From blank, then the cost rollup considers inventory organizations up to the To value.

  8. Enter a range of Cost Category From and To by entering the opening and closing ends of the cost category number range respectively. For a single item or item cost category, enter the same value in From and To.

  9. You can include component costs for a range of items Item From and To by entering the opening and closing ends of the item number range respectively. For a single item or cost category, enter the same value in From and To.

  10. Enter a range of items for which to run the cost rollup in Item List.

Start Cost Rollup Fields

  1. Enter the Start Date and time that the cost rollup process must start. Click Now to start the process immediately.

    To start the rollup at a particular date, click the Specific Date radio button. Enter the date you want the cost rollup to run.

  2. OPM assigns a unique identifier number for each individual cost rollup process in Rollup Reference Number. You cannot edit this entry.

Cost Rollup window - Additional Menu Features - Actions Menu

Start - Displays the Start Cost Rollup window that lets begin the rollup for a specified calendar, period, and cost type.

Process Status - Use this option to review the status of a cost rollup that is in progress. You can also review figures from previous processes, each of which is identified by the reference number. The reference number lookup is available to help you in selecting previous rollups for query.

Abort/Reset - Use this option to abort the cost rollup process that is running currently. For situations where a process was terminated unintentionally, this option also resets the internal controls and settings required to start the rollup process again.

An Aborted Reason field is provided to capture appropriate text.

View Error Messages - Use this option to review any errors generated during a cost rollup processing run. The Cost Rollup Error Messages window is shown. Each generated error is listed on an individual, OPM-generated line. The error itself is explained under the Error Comment heading.

Note: The first message line is not an error, but a summary of the parameters or options selected to start the rollup.

Cost Rollup Error Messages

Describes the Cost Rollup error messages.

  1. Cost Rollup Reference Number OPM assigns a unique identifier number for each individual cost rollup process. You cannot edit this entry.

  2. Line displays the line number of the error message.

  3. Error Message displays the text of the error message.

Viewing Standard Costs

The Viewing Standard Costs discussion describes how to view standard costs once they have been calculated. You can view standard costs for items, formula ingredients, cost overheads, and routings.

You access all of these view cost options from the Item Costs window. Complete the Item Costs window in order to display cost details. Once the Item Costs window is complete, follow these procedures to display item, ingredient, overhead, or routing costs.

Viewing Overhead Details

The Fixed Overheads window displays overhead details for an item as calculated by the Cost Rollup process.

The cost displayed shows the contribution that overheads make to the total unit cost. Overhead details are entered on the Fixed Overheads window.

To view the fixed overhead:

  1. Navigate to the Item Costs window.

  2. Query and retrieve the cost details of the product.

  3. Select Overhead Details from the Actions menu.

  4. Item displays the item for which cost overheads are being displayed. The Item is retrieved from the Item Costs window.

Overhead Details

  1. Inventory Organization displays the inventory organization associated with this item, for which costs are displayed.

  2. Resource displays the resource for which the overhead is assigned.

  3. Component Class Code displays the component class associated with this resource, and used for the overhead cost calculation. Component classes are associated with overheads on the Fixed Overheads window.

  4. Analysis Code displays the analysis code associated with this resource and used for the overhead cost calculation. Component classes are associated with overheads on the Fixed Overhead window.

  5. Overhead Cost displays the calculated overhead cost. The cost equals the resource cost multiplied by the quantity of the resource used for this overhead, divided by the item quantity and the resource quantity. These figures are entered on the Fixed Overheads window.

    For example, if you specified LABOR at $5.00 per hour as the overhead resource, and the overhead quantity is .25 hours, this field equals .25 multiplied by 5.00, or $1.25.

Viewing Routing Costs

For standard cost this window displays the cost of resources used in routings in the production of items or intermediate items. If you use operations and routings in your formulas, the Cost Rollup process rolls up the cost of resources used in operations and routings into the end-product cost.

For each resource, the component class, analysis code, and the component cost from the resource is listed.

To view the routing cost:

  1. Navigate to the Item Costs window.

  2. Query and retrieve the cost details of the product.

  3. Select Routing Costs from the Item Costs window Actions menu.

  4. Item displays the item for which routing costs are shown.

  5. Quantity displays the process amount for the resource with Quantity UOM as its unit of measure.

  6. Routing Number displays the routing code associated with the highlighted routing line for which costs are shown.

  7. Routing Version displays the routing version associated with the routing for which costs are shown.

  8. Recipe Number displays the recipe code.

  9. Recipe Version displays the version associated with the recipe.

  10. Resource displays the resource used for this routing.

  11. Component Class Code displays the cost component class used to cost this resource. The corresponding component class description displays automatically.

  12. Analysis Code displays the analysis code for the component class.

  13. Component Cost displays the cost associated with this resource (cost to produce one unit of this product). For example, if this routing is assigned to the production of Blue Paint, and the unit of measure for Blue Paint is gallons, the cost shown is that to produce one gallon of Blue Paint.

  14. Resource Usage displays the rate of use for the resource.

  15. Resource Count displays the number of resources used.

  16. UOM displays the primary Unit of Measure for the item.

Viewing Formula Costs

Use the Formula Costs window to display the formula ingredient cost for an item. The sum of the ingredient components in a formula should be equal to the product component cost on the Item Costs window.

If more than one ingredient with the same cost component class is used in the production for the item, the cost for each of those items is summarized and shown as one line on the Item Costs window. The Formula Detail window breaks the items down and shows each of them individually.

The item cost component class and analysis code used to cost the item are displayed for each ingredient in the formula. In addition, the component cost associated with each item is also displayed.

To view formula costs

  1. Navigate to the Item Costs window.

  2. Query and retrieve the cost details of the product.

  3. Select Formula Costs from the Item Costs window Actions menu.

  4. Item displays the formula item and for which costs are shown.

  5. Formula displays the formula name used to produce this formula item.

  6. Formula Version displays the formula version.

  7. Recipe displays the recipe name used to rollup the product cost.

  8. Recipe Version displays the recipe version.

Formula Details

  1. Ingredient displays the ingredient for which costs are shown.

  2. Component Class Code displays the component class associated with this formula, used to calculate the formula ingredient costs.

  3. Analysis Code displays the cost analysis code associated with this formula, used to calculate the formula ingredient costs.

  4. Component Cost displays the formula item (ingredient) for which the costing details on this line are displayed.

    The item cost component class and analysis code used to cost this item are displayed. In addition, the component cost associated with the item is also displayed.

  5. UOM displays the primary Unit of Measure for the item.

Viewing Item Costs

Use this window to display item costs for a particular cost calendar, period, and cost type. You can display costs for all, one, or a range of items or cost categories for a particular calendar, period, and cost type.

To display item costs:

  1. Navigate to the Item Costswindow.

  2. Select Item Cost List from the Actions menu. The Item Cost Selection window displays.

  3. Enter the cost Calendar for which you want to display item costs. Required.

  4. Enter the cost calendar period for which you want to display item costs in the Period field. Required.

  5. Enter the cost type code for which you want to display item costs in the Cost Type field.

Selection Range

  1. To display item costs for a range of item cost categories, then enter the first item and last item cost category in the range (alpha-numerically) in Item Cost Category (From, To).

  2. To display costs for a range of items, then enter the first item and the last item in the range (alpha-numerically) in Item (From, To).

    Select Accept . The Item Cost List window displays.

Item Cost List Window

  1. Item displays the item for which costs (on this line) are shown.

  2. Unit of Measure displays the unit of measure for which costs are shown. The cost shown is for one unit of this item.

  3. Organization displays the organization, in which this item is stored, for which costs are shown.

  4. Cost displays the nominal cost for this item, in this inventory organization.

  5. Description displays the description of this item.