Example: Setting Up Cost Bucket Codes for Costed Bills of Material
You can group similar cost components for review and reporting purposes. For example, you can define A1 and A2 cost components as Purchasing. You do this by assigning them the same sequence number in the Description 2 field. The sequence number also determines in which order the groups appear on costed bill inquiries and reports. You can then use the costed bill inquiries and reports to review the total costs for the group Purchase.
Each cost bucket can contain several defined cost components.
This example illustrates how you might define the buckets and UDCs:
Bucket Number |
Description |
|---|---|
Bucket 1 |
Purchase: Includes cost components A1 (material), A2 (scrap), and D1 (outside operations). |
Bucket 2 |
Labor: Includes cost components B1 (direct labor), B2 (setup), and B4 (labor efficiency). |
Bucket 3 |
Machine: Includes cost component B3 (machine run). |
Bucket 4 |
Overhead: Includes cost components C1 (machine variable) and C2 (machine fixed). |
Bucket 5 |
Extras: Includes cost components X1 (taxes) and X2 (electricity). |
This example of UDC 30/CB illustrates how you might define the UDCs in the software:
Codes |
Description 01 |
Description 02 |
Hard-Coded |
|---|---|---|---|
A1 |
Purchase |
1 |
Y |
A2 |
Purchase |
1 |
Y |
B1 |
Labor |
2 |
Y |
B2 |
Labor |
2 |
Y |
B3 |
Machine |
3 |
Y |
B4 |
Labor |
2 |
Y |
C1 |
Overhead |
4 |
Y |
C2 |
Overhead |
4 |
Y |
C3 |
Overhead |
4 |
Y |
C4 |
Overhead |
4 |
Y |