Product design costs

Adding costs

Open: Product design > Product design > Product design

It is mandatory for a new product design BOM revision to have a Cost site defined and a Cost type assigned. You can find these 2 control fields in the Costs block in the Design BOM section. Both these fields are critical for valuing the component costs, and therefore, the overall cost of the product.

• For existing materials that you add to your product design as components, you use the Cost type field to choose whether to use the current standard cost of those products, the latest revised standard cost of those products, the budgeted standard cost or simulated standard cost for those products.

A component of type Existing material reads from the associated product-cost record, if one exists for the respective Cost site and Cost type, to populate the following fields in the components table:

• Component cost
• Material cost
• Machine cost
• Labor cost
• Overhead cost
• Subcontract cost
Product design BOM revisions always read the most current product-cost record.

The cost calculations are in "real time" ensuring the Unit cost and Total cost of the product design BOM revision is available to the design engineer as the design "evolves". You can find these 2 fields in the Totals block in the Design BOM section. You can adjust the initial default costs individually for a specific component line.

• New materials that you add to your design as components do not initially have a product-cost record associated with them. You add the costs manually, either to the component line, to the New material "parent" record, or when you publish the new material to the Products table (ITMMASTER).

  Costs defined on the component line for a New material update the following fields in a New material "parent" record:

  • Cost site and Cost type: Required if a product-cost record will potentially be created.
  • UOM and STK: The design unit and the stock unit.
  • Density: You can define the component Density if the UML - Link quantity in unit of measure activity code is active.
  • Component cost
  • Material cost
  • Overhead cost
  • Cost (STK): The cost in the stock unit.

  You can adjust costs in both a New material parent record, and individually for a specific "child" record for a specific component line.

  The act of publishing a new material creates the appropriate product-cost record simultaneously, writing the costs from the new material to the defined product-cost record.

• Placeholder products that you add to your design, again do not have a product-cost record associated with them. For a Generic product, you add the costs manually to the component line.
• If the component that you add to your design is a Design assembly that has not yet been published to the Products table, or to the Products - BOMs table (ITMBOM), the costs are populated from the design costs, regardless of the Cost site or Cost type.

You can adjust the costs individually for a specific Design assembly component line.

• You can also add a component of type Costing to manipulate the cost of a product design revision.

The objective for a component of type Costing is to assign an element to a product design BOM revision to manipulate, and trial the cost of the parent product. You can use a Costing element to retain, then to manipulate existing component costs, or to assign individual component, or related costs, to calculate in "real time" the total cost of the product design BOM revision.

Once you have determined the costs for a specific component are correct and should not be altered, you can select the Lock costs check box on the component line. This will prevent updates to the component's costs. You can also select the Exclude costs check box to exclude the selected component's costs from the Unit cost and Total cost calculations.

Product design (GESNPI): Locking and excluding selected component lines from a cost recalculation

Updating costs

Open: Product design > Product design > Product design

Open: Common data > Products > Products-costs > Standard costs

Open: Common data > Products > Products-costs > Revised standard costs

Open: Common data > Products > Products-costs > Budget standard costs

Open: Common data > Products > Products-costs > Simulated standard costs

You can update product design BOM revision costs quickly and easily using a variety of methods:

• Manually from the individual component lines.

Introducing, or deleting an "existing" component from the product design revision, or amending a component's cost elements updates the Totals block in the Design BOM section immediately.

The cost calculations are in "real time" ensuring the Unit cost and Total cost of the product design revision is visible as the design "evolves".

• Manually from a New material parent record.

You can modify the cost fields in the Detail section of a New material parent record for a specific component in a specific product design revision. The calculations are in "real time" ensuring the total cost of the product design revision is available after you save the New material parent record and return to the product design revision.

The generated log file includes a Where used section confirming which product design record has been updated.

• Automatically from a New material parent record.

Each field in the Detail section of a New material parent record has an Update child component check box associated with it. Every occurrence of the New material component in every product design revision can be updated if you select an Update child component check box after you save the New material parent record and return to the product design revision. The Totals block in the Design BOM section is also updated immediately.

The generated log file includes a Where used section listing each product design record that has been updated.

If the cost fields in a New material parent record have been updated but not copied to product design BOM "child" records, you can simply select the New material check box for a specific product design revision, then click the Update costs icon.

Selecting the Update costs icon updates both the component costs (if the Lock costs check box is clear), and the Totals block in the Design BOM section immediately.
• Automatically when publishing a component of type New material.

Publishing a new material updates the component line and Totals block in the Design BOM section immediately.

• Automatically from a revised Design assembly record, where the Design assembly is a subassembly component.

Select the Design assembly check box, then click the Update costs icon.

• Automatically from a revised product-cost record.

Organizations typically set product standard costs for an extended period of time. This can be from a minimum period of, for example, 6 months, but usually standard costs apply to a complete fiscal year. Some organizations, however, revise their costs more frequently, such as monthly, or even weekly.

Select the Existing product check box, then click the Update costs icon.

Once you have determined the costs for the product design revision are correct and should not be altered, you can select the Lock check box on each component line. This will prevent updates to the product design revision costs.

Changing the costing method

It is mandatory for a new product design revision to have a Cost site defined and a Cost type assigned. You can find these 2 control fields in the Costs block in the Design BOM section. These fields values are fixed once a component has been added to your product design revision. To cost a product design revision using an alternative cost you must create a new product design revision.