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Bills and routings define the foundation for cost rollups, elemental distribution, and all related manufacturing costing functions.

Work in Process uses the bill of material to determine material requirements and control material transactions. In addition, the primary bill for an assembly determines the standard material and material overhead costs of that assembly.

Work in Process uses the routing to determine production schedules, specify shop floor and operation moves, and control resource, outside processing, and overhead cost transactions. In addition, the primary routing for the assembly determines the standard resource, outside processing, and resource overhead costs of that assembly.

When you submit a cost rollup, you may include or not include unimplemented engineering change orders. The cost rollup also considers the effective date.

Components and resources with effective dates on or before the rollup date are included in the rollup. The cost rollup does not include disabled components or resources.

Note: For phantom assemblies, the cost rollup includes the material costs but not the routing costs in the cost of higher level assemblies. Work in Process charges and values phantom assembly material costs but not phantom assembly routing costs.

Purchased assemblies show different elemental costs when you buy the assemblies rather than build ("make") them. When you purchase a "buy" assembly, the total cost consists of the material and material overhead cost elements only. When you build a make assembly, the total cost consists of the material, resource, overhead, and outside processing cost elements. Thus, the value of the material cost element may differ in buy vs. make situations. This affects job cost, period close distributions, and variances.

A component yield of less than 100% increases the usage quantity of the component and the material and material overhead value of that component in the assembly. According to your cost type controls, the cost rollup may or may not include any component yield factors. See: Yield.

When you roll up an assembly using a common bill, the cost rollup uses the common bill structure to determine the appropriate cost elements. The exception is assembly material overhead. You assign assembly material overhead to the assembly item itself, not the bill structure. This means that the cost rollup uses the material overhead rate of the assembly that points to the common bill, not the assembly that owns the common bill. See: Referencing Common Bills and Routings.

For example, suppose you have a material overhead and a bill for assembly A. Suppose further that you define assembly B using A as a common bill. However, you also define a material overhead rate for B. A cost rollup on A uses A's material overhead. A rollup on B uses B's material overhead.

Common routings are similar to common bills of material. The cost rollup costs common routings like standard routings.

You can define multiple alternates for a bill or routing. You can rollup alternate structures and update these costs into your Frozen cost type.

See Also

Overview of Routings