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   To define item cost details:

1. Navigate to the Item Costs Details window. Do this by choosing the New or Open buttons from the Item Costs Summary folder window. See: Selecting An Item / Cost Type Association.

2. Indicate whether to use default cost controls from the default cost type or those you define for the current cost type.

Attention: If you turn this on, you cannot modify the cost controls or create user-entered costs for this item.

3. Turn Inventory Asset on to indicate that for this cost type the item is an asset and has a cost. Turn Inventory Asset off to indicate that for this cost type the item is an inventory expense item and cannot have a cost.

4. Indicate whether costs are based on a rollup of the item's bill of material and routing. This determines if the structure of the item is exploded during the cost rollup process. Turn this off if the assembly for which you do not want to change the cost.

Generally, assemblies (make items) have this control turned on, and buy items have this control turned off. You can "freeze" the cost of an assembly(for example, for an obsolete item) for the current cost type by turning this off after performing a cost rollup. Future cost rollups do not change the cost for this item.

The default is the value of the MPS/MRP Planning make or buy attribute from the template used to define the item default.

5. Enter the costing lot size for the item.

Use this to determine the unit cost of sub-elements with a basis type of Lot. The costing lot size is separate from the planning lead time lot size.

When you define an item cost for the Frozen cost type, the default is either the standard lot size, or 1, if the standard lot size is blank.

6. Enter the manufacturing shrinkage rate. The cost rollup uses the value you enter here to determine the incremental component requirements due to the assembly shrinkage of the current item. You cannot enter shrinkage for items that do not base costs on a rollup of the item's bill of material and routing (buy items).

Detailed cost information is displayed for reference.

7. Do one of the following:

• Choose the Views button to open the View Item Cost Summary window.

• Choose the Costs button to open the Item Cost window.