Cost Types for Material Cost Calculation

You can select the cost type from the Material Cost field in the Costed Bill of Materials page.

Following are the cost types.

Note:

Following information is applicable to all cost types:

Item purchase price values are converted to the currency of the selected subsidiary.
Service, non-inventory, or charge items do not have any costing method associated with them. So, the value of these items is retrieved from item purchase price. For currency conversion, currency exchange rates values are used.
If an assembly item is not associated with a bill of materials or bill of materials revision, then the costs for the assembly item will be sourced the way the inventory items are sourced.
You will see blank conversion cost values if the values for conversion costs are not defined in the cost template. Some examples for conversion costs are labor setup, machine run, and so on.

Watch the following help video for cost calculation methods: