Cost Rollup for Process Manufacturing

Standard cost rollup supports process manufacturing work definitions with multiple outputs, where the production method requires ways to manage variability that's inherent in materials and processes. This is useful if you require a hybrid of discrete and process manufacturing capabilities.

You can specify the costing batch size to determine the standard cost of production batches and allocate costs based on a fixed cost or a percentage of the total cost, for the primary product, co-products, and by-products.

The Roll up Costs process calculates the costs of output items with active work definitions, based on the cost allocation defined on the work definition operations. When output items are setup with fixed cost allocation, the system expects you to enter the costs of these items manually using the Standard Costs page or bulk interfaces. The entered costs are used to process product completion transactions.

Phantom Items in Work Orders

If a subassembly in a work order has the supply type as Phantom, then you must ensure that it has an active item structure as of the scenario effective date. For subassemblies with the supply type as Phantom in the work definition of a higher assembly, the Roll up Costs process will follow this in the order listed:

• Check whether a work definition exists for the phantom item and use that to roll up the cost.

• If a work definition doesn’t exist for the phantom item, then the process would use the item structure of the phantom item to roll up the cost.

• If neither a work definition exists nor an item structure for the phantom item, then the process will log an error.