The revised standard cost is generally used in order to prepare the way for a new standard cost following the revaluation of a material, an hourly rate etc.

The revised standard costs created in the same year, for the same product and the same site are backed up and can be viewed using the Cost history function.

The revised standard cost calculation can be associated with an accounting interface, which makes it possible, during the update of a new revised standard cost, to re-evaluated the stock value of the semi-finished and finished products.
This function is used to calculate the revised standard cost of a product, a selection of products, all the products at a site from a cost type routing alternative, a cost type BOM alternative , with or without immediate update, to print a document summarizing or detailing the calculation.

The revised standard cost calculation uses the routing data (time) and the valuation dimension data for the work centers associated with the route during the processing.
When the calculation is carried out a raw material, the process makes an attempt to determine the receipt overheads for the material.

The user has several possibilities available for the calculation to establish a standard cost:

  • a choice of calculation quantities,
  • a choice of raw material valuation,
  • overheads,
  • the valuation dimension rates,
  • a posting method for the fixed costs.

For a calculation including the BOM multi-levels or for a calculation for several products, the process is exclusive by site, that is to say no other user can launch a cost calculation at the same site at the same time.
If the process is requested for a selection of products, the system examines these products in decreasing order of the codes at the lowest level.

The calculation with or without the lower BOM levels consists of reading the component costs at the first level and transferring them to the cost of the parent product.

  • When calculated with BOM split, the calculation includes the component costs at the first level, but also all components n decreasing order of the codes at the lowest level.
  • A calculation excluding the lower BOM is justified for an update when the costs of the sub-levels have already been calculated. 

Notes about the material and subcontract cost: :

  • Materials:
     
    By definition, material does not have component. The "Material cost selection" field is used to determine how its cost is calculated when defined as "calculated" and not "entered".
     
  • Subcontract:
     
    The search to value the sub-contract service in a context of production is as follows:
     
    1/ The reference price on the operation, if it exists, is taken into account.
    2/ The price of the valuation method is taken into account if valuation method is on the product-site.
    3/ Search of price list.
     
    The cost of materials given by a subcontract always comes from the price list; if the price list is not found, the standard cost can be used if the PURPRICE - Standard cost default price list parameter has the value Yes.
     
    To search the sub-contracting service (without WO) and the provided material list prices given by the subcontractor (and to search the material list price and the choice of BOM components), the calculation process is systematically based on the validity start date of the cost.

SEEWARNING If a product has a BOM, the production overhead is taken into account, otherwise the receipt overhead is taken into account.

Prerequisite

SEEREFERTTO Refer to documentation Implementation

Screen management

The Revised standard cost calculation calculation is presented in a single screen where the operator indicates the product selections and the calculation parameters.

Entry screen

Selection criteria

Site

The user must indicate the site for the calculation.

Selection of the products

The user must indicate either a product, or a group of products at the site or a selection of products.
When the choice is a single product, it is necessary to indicate the product reference, and to tick the box "unique".
To choose to calculate the standard cost for all the products at the site, tick the "All" box.
To carryout the revised standard cost calculation for a selection of products, it is necessary to create the selection filter via the contextual menu accessible in the Product field.
The filter can be saved.
At the end of the selection the "selection" button activates.

Validity

The user has to specify the validity period of the calculated revised standard cost.

Calculation quantity

This is the quantity that will be used in the calculation.
In the case of a calculation for a single product, this filed is loaded by default by the economic quantity for the product but can be modified.

Calculation parameters

BOM routings

The user must indicate an alternative routing of the cost type, this alternative must be associated with a BOM alternative that is also of the type cost.
In the case where the routing alternative is not entered, the process will only calculate the material costs.

BOM code

The BOM alternative is displayed and is non modifiable. This is the first BOM alternative associated with the routing alternative previously entered.
It is necessary to ensure that this BOM is of a cost type alternative.

Descent through the BOM

The "Descend BOM" field is only active in the case of a single product calculation.
If this flag is set, the process descend through the BOM to the lowest level or up to a parent product whose "Update Revised Standard Cost" code is entered (Cost tab in the product-site record).
The calculation processes and stores the revised standard cost for each parent product found.

If the flag is not positioned, the calculation is carried out at the first level, and it uses the existing costs of the components based on the material cost selected.

Distribution of the fixed costs

The fixed overheads (material loss, setup rate, operation loss rate, fixed rate) are distributed either as a totality or pro rata for the calculation quantity/economic quantity.

Material cost choice

The material cost choice is initialized by default (CLCCUTMAT setup), it is used to value the material cost.

Dimension rate choice

The dimension rate choice is initialized by default (CLCCUTRAT setup), it is used to value the labor and machine elements in the calculation.

OH column choice

The OH column choice (Overheads) is initialized by default (OVECOLCUT setup), it is used to value the overhead element in the calculation, detailed by the nature of the overhead and calculated by applying the fixed rate or the formula in the chosen calculation column.

Update code

The update code is used to :

  • Simulate a calculation (Choice 'no')
  • update the calculation in differed mode, this update is carried out by the "Update the calculated costs" function.
  • update immediately.
Printing the result of the calculation

At the end of the process, a log file can be printed, this file summarized all the products processed and any anomalies found.
A Crystal Report document can then be printed detailing and / or summarizing the calculation.
When a calculation does not include a descent through the BOM, the print is of a calculation summary.

Block number 1

Storage site (field STOFCY)

Use this field to define the storage site (warehouse).

The site defined on the user record is displayed by default but can be amended.

 

Product

field TOUS

Use this radio button to select records to be updated.

  • Unique. To update one specific record.
  • All. To update all records.
  • Selection. To select records using a calculation formula or filters.

Block number 3

Product (field ITMREF)

Use this field to specify the product code to be updated.
Formula (field FILART)

Enter, select or build an Enterprise Management filter calculation expression using the formula editor.

 

 This field is only available if the Selection

 
Major version (field ECCVALMAJ)

Use this field to indicate which major version of this product applies. Major versions might be used where there have been increased or significant changes to the original or previous version, that is the 'form, fit or function' has changed.

Type in, or select a version code from the list of version codes displayed. This field is not available for entry if the product code defined in the Product field is not version managed.
Minor version (field ECCVALMIN)

Use this field to indicate which minor version of this product applies. Minor versions might be used where there have been minor features or changes in functionality, or significant fixes applied to a specific major version.

Type in, or select a version code from the list of version codes displayed. This field is not available for entry if the product code defined in the Product field is not version managed.
Calculation quantity (field CLCQTY)

Use this field to define the quantity to be included in the calculations. This field is only available if a product code has been defined. The default quantity is the Economic order quantity (field EOQ (REOMINQTY)) defined on the product-site record or the Technical lot (field MFGLOTQTY) defined on the product-site record, or 1.
field STU2

This field displays the unit in which the product is stored. It provides the key to prices, costs, volumes etc.

Validity

Fiscal year (field FIYNUM)

Enter the number of the required fiscal year. A blocking message is displayed if a fiscal year not closed has been entered.
Start (field ITCSTRDAT)

The Fiscal year Start and Fiscal year End fields automatically indicate the start and end dates of the fiscal year. You cannot modify these dates.

Block number 5

Date calculated (field ITCDAT)

Cost calculation date. The default calculation date is today's date but can be changed. The defined date is written to the applicable Products-costs record.

 Only those components in a bill of materials (BOM) valid on this date are included in the calculations.

 This date must fall between the start and end dates of the defined Fiscal year (fields Start (field ITCSTRDAT) and End
BOM type (field BOMALTTYP)

Select Manufacturing if you manufacture this bill of materials (BOM); if it is procured from a subcontractor, select Subcontracting.
Routing code (field ROUALT)

Multiple routings can be defined for a single product. Each routing code can be assigned specific management features. These include restriction of the routing to a specific site and to specific areas of functionality (for use in a manufacturing environment, for costing or for capacity planning). Use this field to define the route for the calculation of the components, machines, resources, workforce and subcontractors.

From this routing code, the program searches for the first valid alternative bill of materials (BOM) for the defined site. If you leave this field blank, only a material calculation can be made (valuation and calculation of material overheads).
BOM code (field BOMALT)

Multiple bills of materials (BOMs) can be defined for a single product. Each BOM code can be assigned specific management features. For manufactured or subcontracted products this includes restriction of the BOM to a specific site and to specific areas of functionality (for costing or for capacity planning).
Calculate all BOM levels (field DESCEND)

The Calculate all BOM levels check box is only active for a single product calculation.

  • If this check box is selected, the cost calculation process descends through the bill of materials (BOM) to the lowest level, or up to a parent product whose 'Standard cost update' in their product-site record is entered. The cost calculation thus starts from the lower components. The standard cost of each component at each level will be calculated and stored, and the report will then be detailed.
     
  • If this check box is clear (not selected), the calculation is performed at the first level, from the standard costs of the components of the calculated products. This also applies if the calculation is launched for multiple products.

SEEINFO By definition, a material does not have to be a component. The selection field is used to determine how its cost is calculated when defined as 'Calculated' and not 'Entered'.
Fixed costs distribution (field FXDCSTDSP)

Use this field to define how the fixed overhead costs (material loss, setup rate, operation loss rate, fixed rate) are to be distributed.

  • Prorata. The fixed costs will be multiplied by the Calculated product quantity/Economic lot quantity combination.
  • Total. The total fixed cost will be posted.
Material cost (field SLTMATCST)

Use this field to define the type of cost to be used to value materials. The default cost type is defined in the CLCxxxMAT-Mat cost selection xxx calc parameter (TC chapter, COS group), where xxx corresponds to the type of cost calculation being performed (budget, standard, revised standard, simulation). You can change the default cost type, if required. The possible values are:

  • Standard cost,
  • Revised standard cost
  • Budget cost,
  • Simulated cost
  • Last cost. This value corresponds to the cost of the last recorded movement.
  • Average cost
  • Last purchase price. This value corresponds to the last receipt price or last invoice.
  • List price. The material is valued from a price list of the type priority supplier/product.

SEEINFO The selection of the cost type only applies to the cost calculation of a material (component without a valid BOM for the alternative). The cost of a product with a BOM is calculated based on the cost of its components. The cost of materials from a subcontractor always comes from a price list. If the price list is not found, the standard cost can be used if the PURPRICE - Standard cost default price list parameter is set to 'Yes'.
Dimension rate (field VLTCCERAT)

Use this field to define the dimension rate to be used to value time. The default cost type is defined in the CLCxxxRAT-Dimension rate selection xxx calc parameter (GPA chapter, COS group), where xxx corresponds to the type of cost calculation being performed (budget, standard, revised standard, simulation). You can change the default dimension rate, if required.
Overhead column (field SLTOVECOL)

Use this field to define how overheads are valued. The default column is defined in the OVECOLxxx-xxx calc overhead column parameter (GPA chapter, COS group), where xxx corresponds to the type of cost calculation being performed (budget, standard, revised standard, simulation). You can change the default column, if required.

The value of an overhead is calculated by applying the fixed rate or the formula in the chosen calculation column.

Update

Update (field MAJ)

Use this field to control any postings to the products-costs records.

  • No. The products-costs records are not updated.
  • Deferred. The update can be deferred and posted using the Calculated cost update function.
  • Immediate. The products-costs records are updated immediately upon completion of the calculation run.
Replace previous cost (field RPLPRVCST)

When a standard cost is updated immediately, a new sequence is created. Click this check box to replace the cost created previously with the same validity period (start and end date).

Batch task

This function can be run in batch mode. The standard task CALCSTCUT is provided for that purpose.

Error messages

The only error messages are the generic ones.

Tables used

SEEREFERTTO Refer to documentation Implementation