The option used to track standard BOM costs calculated through BOM revisions. The option is located in the right mouse button menu of the Bills of Materials, BOM Revisions and Materials windows.
In order to calculate standard BOM costs, the Standard Cost box located in the Bills of Material Relation tab of the Material window should be checked, and the standard material costs must be entered. Standard material costs are recorded using the Standard Material Costs option located in the right mouse button menu of the materials window.
The BOM Code, Description, Route Code and Description are displayed on the top pane of the standard BOM costs window accessed through the bills of materials, BOM revisions and materials windows. The Plant and Period information of outputs specified on the BOM are displayed on the lines. Calculated line costs are displayed in local currency and reporting currency.
Calculating Standard BOM Costs
Standard cost usage and calculations are used to provide determining deviations of costs stipulated by viewing the differences between actual costs and planned costs and to provide taking necessary precautions.
Standard cost consists of standard material cost, standard workstation cost, standard employee cost and overhead costs.
Standard costs are entered based on a specific period. And again, calculations within the context of standard cost, are done based on specific periods.
Cost Periods
In standard cost system, info entry and calculation can be done based on periods. Material periods are recorded by Cost Periods option located in the Definitions menu of the Administration section.
Entering Raw Material Standard Costs
Standard material costs should be entered by F9 menu of raw material, for the period that cost calculation will be done for.
Entering Workstation Standard Costs
Workstation standard costs are entered by "Standard Workstation Costs" option located in F9 menu of workstation cards.
Entering Employee Standard Costs
Employee standard costs are entered by "Standard Employee Costs" option located in F9 menu of employee cards.
In BOM, 5 different formula / amount entries can be done for standard overhead calculation. In order to calculate over local currency or reporting currency, in a single line, entry can be done totally or one by one.
Calculating BOM Standard Costs
By standard cost system, it is provided to calculate standard BOM costs in BOM entry phase before production order is not given.
To be able to calculate standard BOM costs following controls have to be done:
- Procurement Type should be selected as Production in Plant Parameters of Finished Good
- In Material-BOM Relations tab of finished good, "Standard Cost" option should be marked in BOM line that standard cost will be calculated for.
- Raw materials' standard costs should be entered for related period.
- Workstations' standard costs should be entered for related period.
- Employees' standard costs should be entered for related period.
- In order to calculate workstation and employee costs, "Costing" column should be marked in related operation line of route.
When these transactions are executed, by using "BOM Cost Calculation" option, located in F9 menu of BOM, calculated BOM cost can be viewed.
When calculating standard BOM costs, standard costing values entered by material card are taken into consideration for the inputs of which procurement types are determined as Purchasing. Standard BOM costs are considered for inputs of which procurement type is Production.
Batch Standard BOM Cost Calculation
In order to calculate the standard BOM costs in batches and save as standard BOM cost, "Batch Standard BOM Cost Calculation" option is run located in the Operations menu of the Production Definitions section.
After the calculation, the standard costs recorded by program can be viewed by Standard BOM Costs window located in F9 menu of the BOM. Also standard cost amounts can be reached by F9 menu of finished goods.
Standard Cost Average Exchange Rates
In the event of entering standard costs in transaction currency, average exchange rates are used for related period. Average Exchange Rates are entered by Standard Cost Average Exchange Rates option located in the Definitions menu of the Administration Section.
Tracking Standard Costs by Inventory Report
Standard costs can be tracked by inventory report. Likewise, standard material costs can be also tracked by Detailed Sales, Material Sales Extract and Sales Distribution by AR/AP reports. By this way standard cost can be compared with actual costs.
Standard BOM Costs List By Level
By using Standard BOM Costs List By Level report, the receipts can be listed according to levels specified in filters by standard costs.