Setting Up Cost Classifications

Access the Revise Cost Types form.

Cost Type

Enter a code that designates each element of cost for an item. Examples of the cost object types are:

A: Purchased raw material.

B1: Direct labor routing rollup.

B2: Setup labor routing rollup.

C1: Variable burden routing rollup.

C2: Fixed burden routing rollup.

Dx: Outside operation routing rollup.

Xx: Extra add-ons, such as electricity and water.

The optional add-on computations usually operate with the type Xx (extra add-ons). This cost structure enables you to use an unlimited number of cost components to calculate alternative cost rollups. The system then associates these cost components with one of six user-defined summary cost buckets.

Cost Classification

Select a value from the Cost Classification UDC table (31P/CC) to associate cost types or account numbers with cost buckets, such as material costs, labor costs, other costs, or special costs. Correct cost classification ensures that costs are rolled up into the correct cost bucket in the Project Workbench program (P31P001).