Understanding Product Costing for Configured Items
Costing for configured items is different from costing for nonconfigured items because configured items do not have a standard bill of material or routing. Because no standard configuration exists, you cannot establish costing before you enter an order. The discrete standard-cost rollup concept does not apply to a configured item, so you do not run the Cost Simulation program (R30812), and no frozen standard costs exist in the Item Cost component Add-Ons table (F30026).
However, standard costs for purchased parts and manufactured parts that are used by configured items must be established and frozen (07 Cost Method) in the F4105 table to be factored into the calculated costs for configured item work orders.
The Order Processing program (R31410) performs a cost rollup when it attaches a parts list and routing to a work order for a configured item. A processing option instructs the program to calculate the costs. The costs are stored in the Column 1 - Frozen Standard field in the Production Cost table (F3102), not in table F30026.
The costs are the accumulation of the standard costs for the components, the labor and overhead values that are defined in manufacturing constants, the attached routing and work center information, and work order values.
For a configured item, the system calculates A1 material cost based on the total cost of its direct components. The components are defined by the P and Q assembly inclusion rules.
The system calculates B1 direct labor cost based on the item routing, which is defined by the R assembly inclusion rule.
Cost defined by the X assembly inclusion rules affects only the sales order and not the work order. Thus, you cannot retrieve associated X assembly inclusion rule costs from the F3102 table.
After the Order Processing program establishes the standard costs for the configured items, journal entries for configured items are created in the same way as journal entries for nonconfigured items.
Sales quotes for configured items are an exception to the standard costing rule for configured items. The standard cost for a configured item on a sales quote is calculated without running the Order Processing program if the Cost Sales Quote functionality is enabled in the Configurator Constants program (P3209).
The sources of cost generation in table F3102 for configured items includes:
Costing method: standard costing (07).
Costing method: weighted average (02).
Costing method: manufacturing last cost (09).
Standard: R31410.
Current: Not used.
Planned: R31802A.
Actual: R31802A.
Completed: R31802A.
Scrapped: R31802A.
Unaccounted Completed: Not used.
For costing methods 02 and 09, the system populates the Unaccounted Completed field from the Work Order Completions program (P31114).
Unaccounted Scrapped: Not used.
For costing methods 02 and 09, the system populates the Unaccounted Scrapped field from the Work Order Completions program (P31114).