1. Product Costing and Manufacturing Accounting Implementation Guide
  2. Understanding UDCs for Product Costing

Understanding UDCs for Product Costing

Many fields throughout the JD Edwards EnterpriseOne Product Costing and Manufacturing Accounting systems require UDCs. UDCs enable you to establish and maintain valid codes for various types of information to meet the needs of the organization. Codes are categorized by system and code type.

This table lists the UDCs that are used by the JD Edwards EnterpriseOne Product Costing and Manufacturing Accounting systems:

UDC

Description

Cost Component Add-Ons (30/CA)

Use cost components to identify and track each type of cost for an item. The letter A at the beginning of a cost component is used for material costs, B for labor and machine hours, and C for labor and machine-based overhead. Cost components that begin with A, B, or C are hard-coded and cannot be changed or used for other cost component types.

You can define an unlimited number of additional cost components to account for extra costs for an item, such as electricity or research and development. You can assign separate cost components by categories that are applicable to the business. The UDCs for extra cost components can begin with any letter except A, B, or C. Although you might attempt to set up extra cost components that begin with these letters, the Cost Simulation program (R30812) actually deletes these cost components.

Note: The letter D is used for outside operations in demo data, but any code other than A, B, or C with a special handling code of 1 can be used.

When you set up cost components, define a separate UDC value for all the possible cost components that might be used in the cost rollup for an item.

Complete the following fields with the information indicated:

  • Codes: The code for the cost component.

  • Description 1: What the component represents.

  • Description 2: Additional text that further clarifies.

  • Special Handling: Use a value of 1 to define a code as an outside operation.

    Note: You can use a cost component only once for an outside operation in a routing. If you have more than one outside operation, you need to define different cost components, such as D1 and D2.

Cost Buckets (30/CB)

Use cost buckets to group similar cost components for inquiry and reporting purposes.

When you set up cost buckets, complete the following fields with the information indicated:

  • Codes: Identify the cost components to be grouped.

  • Description 1: Enter the name that you want to appear as the heading for the cost bucket column on costed bill review programs and reports.

    You need to enter this title only once for each sequence number (entered in the Description 2 field). If the program finds more than one name for a bucket, it uses the name that is defined for the last cost component that it accumulates into the operation bucket.

  • Description 2: Specify in which column (bucket) each cost component is grouped.

Costed Operation Buckets (30/CO)

Use operation bucket codes to combine component costs in each step in the routing. That is, you can group operation costs into totals that appear on review programs and reports for costed routings. For example, you might track labor costs by separate cost components that represent setup, run, and overhead labor for an item. When you assign the same sequence number to each cost component, you can combine these cost components into one total cost for labor on the review program for costed routings or report for the item.

When you set up operation bucket codes, complete the following fields with the information indicated:

  • Codes: Identify the cost components to be grouped.

  • Description 1: Enter the name that you want to appear as the heading for the operation bucket column on costed routing inquiries and reports.

    You need to enter this title only once for each sequence number (entered in the Description 2 field). If the program finds more than one name for a bucket, it uses the name that is defined for the last cost component that it accumulates into the operation bucket.

  • Description 2: Specify in which column (bucket) each cost component is grouped.

    You should reserve buckets 1 and 2 for extra costs. The system cannot calculate cost buckets 1 and 2 based on the routing, because extra costs are not related to a particular operation on the routing. Buckets 1 and 2 appear in the header area of the Costed Routing Inquiry program (P30208), and a processing option controls whether they are included in the calculation of total costs.

Costing Exceptions Error Messages (30/EM)

Set up the error messages that appear on the Costing Exceptions report (R30801) when any item contains any of the errors that are included in this table. You can change the severity level of an error to one that is appropriate for the company. The severity level is defined in Description 2.

The error messages are hard-coded. You cannot add or delete messages. If you change the name of an existing message, you should not change its meaning, but merely adapt the definition to one that is more clearly understood by the company.

Average Cost Calculation (40/AV)

If you want the weighted average cost (cost method 02) to be updated automatically by the system, use this UDC table to enter the program numbers for each of the programs that you want the system to update. Add Work Order Completions (P31114) and Variance Journal Entries (R31804) for actual costing.

Cost Method (40/CM)

Define the cost methods that are used to calculate costs for all items. Codes 01 through 09 are hard-coded and cannot be altered. Codes 10 through 19 are reserved for use by the JD Edwards EnterpriseOne system from Oracle. Codes 02, 07, and 09 are the only cost methods that are supported by manufacturing.