Understanding Configured Item Costing on a Purchase Order

The first step in costing configured items for purchase orders is to set the Configurator Costing Method field on the Item Master Revisions form. The configurator costing method is used to specify how the system determines the cost of a configured item. The cost method code determines whether to cost components or parent items.

This table describes the types of method codes that are used:

Method	Description
Configurator Costing Method 1	The system accumulates the base costs of the components with the configured cost adjustments, and then discounts the total.
Configurator Costing Method 2	The system accumulates the base cost of the parent item with the configured cost adjustments, and then discounts the total.
Configurator Costing Method 3	The system accumulates the configured cost adjustments, and then discounts the total.
Configurator Costing Method 4	The system accumulates the individually discounted costs of the components with the configured cost adjustments.

After you define the Configurator Costing Method on the Item Master Revisions form, you must define costs for the components and the configured item in the Item Cost File table (F4105). The system uses the base cost to cost the item. If you define special cost adjustments or discounts for the item, the system bases the calculation of the discounted cost on the base cost.

Additionally, JD Edwards EnterpriseOne Advanced Pricing can also be used with any cost method code. However, no general ledger entries are created.

You can use cost adjustment, or X assembly inclusion rules, to affect the cost for the configured item, regardless of the cost method that you selected. X rules work with base and advanced pricing as well.