Adding Additional Costs
To define additional costs for a make item, use the Additional Costs by Item component. Use the Additional Costs by Item component interface to load data into the tables for this component.
This section discusses how to enter additional costs by item.
|
Page Name |
Definition Name |
Usage |
|---|---|---|
|
CE_ITEMEXP |
Add additional costs to purchased or makeable items. |
Use the Additional Item Costs page (CE_ITEMEXP) to add additional costs to purchased or makeable items.
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To define additional costs, use the Additional Costs by Item component (CE_ITEMEXP).
This example illustrates the fields and controls on the Additional Item Costs page. You can find definitions for the fields and controls later on this page.
You can add additional costs to the cost of a manufactured or purchased item by using the Additional Item Costs page. This enables the system to calculate and track the fully burdened cost of the item. Examples of additional costs are duty, freight, inspection, procurement expenses, and material handling. Based on the cost type and cost version combination that is defined for the business unit and item and entered on the Cost Rollup page, the system adds these additional costs, one cost at a time. These costs are applied after all labor, machine, material, and overhead costs are added.
When you use this page to add landed cost components to an item, you can track and analyze the total landed cost for that item. You can set up consigned items as landed cost items; if you do, the system transacts all accrued landed cost charges when the consigned item is consumed.
The Exp Sequence No (expense sequence number) determines the order in which the system applies costs; it is especially critical when it applies the rate to the total cost. The total cost base includes material, labor, machine, subcontracting, overhead costs, and any additional cost that was previously applied to that point.
You must define how the system calculates the additional cost. Application Method values include:
Field or Control |
Description |
|---|---|
% of Material Cost (percentage of material cost) |
Select to multiply the percentage that is specified by the sum of all costs whose cost category you set to Material on the Cost Elements page. |
% of Total Costs (percentage of total costs) |
Select to include all material, labor, machine, subcontracting, and conversion overhead costs, plus any previously calculated additional costs as the total cost basis. For example, suppose that the item material cost is 1.00 and you define an additional cost for sequence 10 as 50 percent of material cost and sequence 20 as 100 percent of total cost. The basis for applying additional costs for sequence 20 is 1.50 (1.00 of material cost plus 50 percent of 1). |
Amount Per Unit |
Select to add this amount to the cost of the item. You can use this method if you determine activity costs and apply those costs to items that consume the activity. |
The Transaction Group field defines the point at which you apply the additional costs into inventory:
Field or Control |
Description |
|---|---|
020 Putaway |
Select to receive the item into inspection or stock using the transaction group 020 Putaway. For purchased items, this takes place following receiving and inspection, whereas for makeable items this takes place following the completion from a production area and receipt into stock or to another production area. All landed costs use the Putaway transaction group. |
030 Usages & Shipments |
Select to issue the item out of inventory to a customer or to another business unit using the transaction group 030 Usages & Shipments. Costs that are applied at the time of issue are never included in the item's inventory value. |
Note: For standard cost items, if you run the Cost Update/Revalue process for the item that is specified, then you cannot change the transaction group selection.
Assign a Cost Element for each additional cost. The cost element selected must have a cost category of Inbound, Outbound, Landed, or Other entered on the Cost Elements page.