Rollup cost is a method of production order cost calculation. While calculating, the other elements (labor, overheads etc.) incurring the material cost over the production order cost are separated. Thereby it is possible to track stock inventory value in terms of material cost, overheads and other costs separately. While calculating, overheads, labor and workstation costs are added to the overheads, labor and workstation costs of a child production order from. Rollup cost can be calculated only after calculating the actual cost.
Note: Regardless of the selection made for Material Costing Method parameter located in Material Management Parameters, RollUp Cost is calculated by FIFO method.
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