Assigning Values to User-Defined Cost Components

Access the Enter Cost Components form.

Cost Type

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

A1: 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.

Simulated Net Added and Frozen Net Added

If you want to assign a net-added value manually, enter the appropriate value for the cost component. The system uses this value to calculate costs during the simulation process.

This is the cost to build this item at its level in the bill of material. This cost does not include materials (lower-level components).

The program displays costs that you manually enter in the Simulated Total field.

If you have run the Item Cost Component - Frozen Update program (R30835), the system displays frozen net-added costs.

Simulated Total and Frozen Total

Enter the sum of the net added cost at this level plus the sum of the total costs of the direct components of the item (which includes lower-level component costs of those items.) The heading above the Net Added and Total columns indicates whether the costs are simulated or frozen values.

The system uses this value to calculate the cost of all the lower levels during the simulation process for the designated cost method.

If you have run the Item Cost Component - Frozen Update program, the system displays frozen total costs.

Sim Fac Code (simulated factor code)

To assign a predefined value to a cost component for extra costs, select one of the values that you defined for the factor code (30/CF) in the Generic Message/Rates table (F00191). The system multiplies the value in this field by the value in the Simulated Rate field.

Note: To review the valid factor codes, use the Search button or select Factors from the Form menu.

To assign a value to a cost component based on the total value of another cost component, select a cost component type and type & followed by the cost component code in the Sim Fac Code (simulated factor code) field.

Because of the way in which the system rolls up the costs, the cost component that you reference must come before the cost component that you are defining. For example, to define cost component X2, you can reference cost component X1 by entering &X1 in this field, but you cannot define cost component X1 by referencing cost component X2.

To assign a calculated value based on the net added value of another cost component, you must enter specific information in this field: * followed by the based on cost-component code.

Because of the way in which the system rolls up the costs, the cost component that you reference must come before the cost component that you are defining. For example, to define cost component X2, you can reference cost component X1 by entering *X1 in this field, but you cannot define cost component X1 by referencing cost component X2.

The system retrieves the total value or net-added value for the based on cost component and multiplies it by the value in the Simulated Rate Code field or the Simulated Rate field.

Simulated Rate Code

To assign a predefined value to a cost component for extra costs, select one of the values that you defined for the rate code (30/CR) in the Generic Message/Rates table (F00191). The system multiplies the value in this field with the value in the Sim Fac Code field.

Note: To review the valid rate codes, use the Search button or select Rates from the Form menu.

Frozen Net Added

For standard costing, this field displays the net added costs after you run the frozen cost update process.

If you use actual costing (cost method 02 or 09), you enter the actual costs directly into this field.