Displaying Engineering BOM Costs
This topic provides an overview of engineering BOM costs and discusses how to display engineering BOM costs.
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Page Name |
Definition Name |
Usage |
|---|---|---|
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EN_BOM_INQ_COSTED |
Display EBOM summary costs. |
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EN_BOMCOST_OUT_SP |
Display, by output type, all lower-level costing details for each co-product based on the costing percentage split. |
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Detailed Costs Page |
EN_ITEMCOST_OUT_SP |
Display This Level Costs and Lower Level Costs by cost element for the selected item ID and output type. |
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EN_ITEMCOST_SP |
Display EBOM component details. With this page, you can display the Extended This Level Cost and Extended Lower Level Costs by cost element for the selected component item, cost type, and cost version. |
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EBOM Costed Report |
EN_BOM_COST_REPORT |
Generate a hard copy report (ENS1010) that lists in detail associated engineering BOM costs. |
To determine the costing impact of EBOM changes to an assembly, you can display the costs of an assembly, its components, and outputs by cost type and cost version. This is especially useful for determining the costing impact of engineering BOM changes on an assembly.
The Costed EBOMs component performs a mini cost roll-up on the assembly that you enter. It calculates the assembly's cost (including all outputs) by summarizing the cost of the components and outputs based on the BOM in effect on the date specified or for the revision specified. Routing costs are not recalculated.
Here is how the system performs the cost roll-up:
It looks at the components and outputs in effect for the selected BOM code, based on the as of date, and it uses BOM code 1 for all lower levels.
To value the components, it uses the existing costs associated with the item for the cost type and cost version selected.
This includes any This Level and Lower Level labor, machine, subcontracting, and overhead costs for the component (when the component is a subassembly).
It includes the routing cost by using the existing This Level labor, machine, subcontracting, and overhead costs for the cost type and cost version based on the cost roll-up performed.
Note: Expensed and planning items are not included in the cost roll-up. No costs are required for expensed or planning items because no quantity on hand is maintained in inventory.
You maintain cost types and versions within PeopleSoft Cost Management. Cost types enable you to do costing simulations and what-if analyses and to calculate new standard costs prior to updating your production costs. Cost versions are iterations of a particular cost calculation for a cost type. You can have multiple versions of costs for each cost type. Cost roll-ups for production items are calculated by cost type and cost version. Within PeopleSoft Engineering, you specify engineering cost versions for the cost types defined in PeopleSoft Cost Management. This enables you to perform cost roll-ups on the EBOM. You can't display costed EBOM information for rework EBOMs.
Once you've performed the engineering BOM cost roll-up using the selected cost type and engineering cost version, BOM code, and routing code, you can use this inquiry to determine what impact subsequent changes to the BOM have on the item's cost.
Use the Costed EBOMs page (EN_BOM_INQ_COSTED) to display EBOM summary costs.
Navigation:
This example illustrates the fields and controls on the Costed EBOMs page. You can find definitions for the fields and controls later on this page.
Field or Control |
Description |
|---|---|
Unit, Item ID, Cost Type, Cost Version, BOM Code, and Routing Code |
Select the appropriate information for the BOM that you want to view. |
Cost Version |
Select an engineering cost version that is valid for the cost type selected. Also, to correctly calculate the total cost, costs for each of the assembly item's purchased components must exist for the cost type and cost version selected. This is accomplished by rolling up the cost type and version within PeopleSoft Cost Management. |
BOM Code |
As long as the BOM exists, you can enter a BOM code other than the one used for the latest cost type version where a roll-up was performed. In this case, the Output Costs page does not display any cost version cost details, because the cost details do not exist (no roll-up was performed). In addition, if you enter a BOM code that doesn't exist for a cost version, the routing code is deselected and no This Level costs are included in the calculations. When the BOM code is valid for a cost version, then the routing code must be valid for the cost version as well, because this is used to calculate the This Level costs for the inquiry. |
Eff Date or Revision |
Enter this information for the BOM that you want to view. You can select any valid BOM code, but regardless of what depth you enter, the system calculates all lower levels based on the primary BOM code. |
Cost as Batch |
If the item and BOM code entered is a multi-output item (that is, it has co-products), then the Cost as Batch check box is selected and is display-only. In this case, the results rendered by the inquiry represent the total cost of the batch (as opposed to one unit of the batch) and the required quantities, and the extended cost calculated is for the entire batch (based on the BOM quantity). If the item is a single output item having a BOM quantity greater than one, you have the option to cost as batch. In this case, you can choose to cost the item in terms of the production of one unit of the end item or choose to cost as batch, in which all component costs and This Level Costs are scaled up based on the BOM quantity (similar to a multi-output item). In other words, the purpose of the Cost as Batch is to allow single output items (which are normally displayed based on a quantity of 1) to have the component and output quantities and costs displayed based on their full BOM quantities. For example, if an item had a BOM quantity of 10 and the check box is deselected, then the costs would appear based on a BOM quantity of 1. If the check box was selected, costs would appear based on a BOM quantity of 10. |
View |
Select how you want to view summary data: Indented or Non-Indented. The indented option provides an indented (tree) BOM structure for the selected depth. |
After you've made your selections, click the Search button to display component costed information for as many levels as you entered in the Depth field. The system derives the cost of the assembly from the component's This Level and Lower Level costs for the cost type, version, BOM, and routing code selected. It calculates cost for all assemblies and subassemblies that fall within the depth selected. If the BOM code entered is not 1, then the outputs within the Output Costs link reflect the outputs for the BOM code entered, and the components listed for level 1 are based on that BOM code. Lower levels always use BOM code 1. The routing code entered is used solely to determine This Level costs included in the calculation for inquiry total costs.
Note: While you can run a Costed EBOMs Summary inquiry for a purchased item that has an EBOM, the system calculates only the material costs, based on the material costs for the components specified and the cost type and version that you select.
Field or Control |
Description |
|---|---|
Extended Cost |
Displays the extended cost, which is the component's cost for the cost type and version specified, multiplied by the cost required quantity standard unit of measure. The Cost Required Qty Std UOM represents the quantity needed for each component to build the item ID specified. This depends on the Cost as Batch setting; if it's selected, it would be the required quantity to build the batch, and if it's not selected it's the required quantity to build one of the items. The Cost Required Qty Std UOM factors in assembly BOM quantity, component quantity per assembly or order, and component yield. Even though they have only a purchased cost associated with them, by-products also appear. If the by-product is a recycle by-product, then the cost is negative; if it's a waste by-product, then the cost is positive, unless the item doesn't have a purchase cost, in which case the cost is zero. Note: If the component is displayed as a subassembly, only the This Level costs appear on this page for the subassembly. Lower Level costs for the subassembly appear within the child components of the subassembly. |
Total Cost |
Displays the total cost, which is the sum of all the extended costs of all components on an EBOM for a specific effectivity date or revision, plus any This Level costs for the item. The system computes the costs for each component, and then sums for the assembly item. For assemblies that have by-products: Even though they have only a purchased cost associated with them, by-products also appear. If it's a recycle by-product, the cost impact is negative and is subtracted from the total cost. If it's a waste by-product, the cost is positive, and is added to the total (unless the item didn't have a purchase cost, in which case the cost is zero). |
Revision-Controlled EBOMs: Depth Information
It is best to select the maximum depth for revision-controlled EBOMs.
There are times when the same revision-controlled EBOM may reflect different costs. For example:
If you enter a depth less than the maximum number of levels for the costed EBOM, the lower-level costs displayed reflect the costs generated by the original cost roll-up for this cost version and date.
If, however, you enter the maximum depth for the costed EBOM, the lower-level costs displayed reflect the most current BOM and routing, not the cost version that you entered on the Costed EBOMs Summary page.
In addition, if changes occur to the EBOM and routing after the cost roll-up, the cost of the EBOM where you have entered a depth less than the maximum may reflect something different from the cost from the maximum depth EBOM. Both of these costed EBOMs are considered correct, depending on the depth that you enter.
The following diagram illustrates the cost calculation for a revision-controlled bill of material. This case can apply to either a manufacturing BOM or engineering BOM:
The following diagram illustrates how your entry in the Depth field of the Engineering BOM Costed - Costed EBOMs inquiry page can impact the top-level cost. In this case, component G was replaced with the higher-cost component H on April 1st. The last cost roll up was on March 1st. If the depth field has a value of 1, then the displayed top-level cost on the Engineering BOM Costed - Costed EBOMs inquiry page does not display the new component cost. However, if the depth is 5, then the new component is used and the newer top-level cost is displayed:
Cost calculation example showing impact of depth selection during inquiry
Use the Output Costs page (EN_BOMCOST_OUT_SP) to display, by output type, all lower-level costing details for each co-product based on the costing percentage split.
Navigation:
Click the Output Costs link on the Costed EBOMs inquiry page.
Note: Due to rounding differences, you may see a small variance (+ or − 0.0003) between the cost version costs and the inquiry costs in this inquiry. This occurs when the system displays the costed BOM results for an item that's either a batch item or has batch assembly items at lower levels.
Item Cost Details tab
Select the Item Cost Details tab on the Output Costs page.
Field or Control |
Description |
|---|---|
Cost Version Item Cost |
Displays the last stored cost. |
Inquiry Item Cost |
Displays the new cost of the item being queried. |
Delta |
Displays the difference between the cost version item cost and the inquiry item cost. |
Batch Cost Details tab
You can select this tab only if you selected Cost as Batch on the Costed BOM page.
This tab displays BOM cost broken down by output type. For example, a process has two co-products: A and B. co-product A has a cost allocation percentage of 60, and co-product B has a cost percentage of 40. One row displays A, with 60 percent of the costs, and another row displays B, with 40 percent of the costs.
Field or Control |
Description |
|---|---|
Inquiry Batch Cost |
Displays the total cost from the Costed BOM page multiplied by the cost percentage of the primary product or co-product. |
Note: The cost percentages must equal 100.
Use the Component Detail Costs page (EN_ITEMCOST_SP) to display EBOM component details.
With this page, you can display the Extended This Level Cost and Extended Lower Level Costs by cost element for the selected component item, cost type, and cost version.
Navigation:
Click a Component ID field value.
Field or Control |
Description |
|---|---|
Cost Elmnt (cost element) |
Displays a category of costs defined by you, such as materials, labor, or overhead. |
Extended This Level Cost |
Displays the item's extended cost of putting the components together. This cost is also known as the conversion cost. |
Extended Lower Level Cost |
Displays the item's extended cost of its components prior to their assembly at this level. |
Total |
The field on the left sums the This Level Costs for all cost elements, and the field on the right sums the Lower Level Costs for all cost elements. |
Example
If A is a component on an assembly and is itself a subassembly composed of components B and C, and the cost of B is 20.00, and the cost of C is 30.00, then A's Lower Level Cost is 50.00 (not considering extended costs). If the cost of putting B and C together is 25.00, then A's This Level Cost is 25.00. For the assembly on which A is a component, the top-level assembly's Lower Level Cost is 75.00 (A's This Level Cost plus the Lower Level Cost).
Rounding
PeopleSoft Cost Management calculates the different extended costs by multiplying cost by the calc quantity. It then displays the cost results to four decimal places for viewing purposes. Calc quantity can represent a value from 4 to 10 decimal places. The QPA rounding setting determines the decimal range for the calc quantity.
Note: The content of this section is only part of what you need to know to define QPA rounding. Other relevant information, because it is common to many applications, is located in the PeopleSoft Application Fundamentals product documentation.