Costing BOMs
You can calculate the cost of building a BOM A stock assembly and process costing system, which provides facilities to specify the structure of finished items in terms of sub-assemblies and components., based on its content. BOMs need to be costed when prices, components Raw materials used to manufacture finished goods. or operations The labour, machine and tool processes required to manufacture an item. change.
You can cost an individual BOM, or multiple BOMs, at the same time and specify the quantity that you want to calculate cost for.
BOMs may or may not include sub-assemblies. The defaults for handling sub-assembly costing are set in the BOM Settings Costing tab.
Overheads are included in the cost. The overhead that is used, depends on your cost settings.
If Calculate overheads automatically is selected on the BOM record Details tab, then overheads are calculated using the percentage values on the cost headings. If the setting has not been selected, a single Overhead Contribution value for overhead cost is taken from the BOM record.
By default, the cost rate stored on the operation is used when costing BOMs. You can choose always to use the cost rate set on the resource or resource group instead. Or you can choose to use the cost rate on the resource unless it has been overridden on the operation. You make the choice by selecting the Resource Cost Rate Source setting in the BOM Settings Costing tab.
Markup percentage values are applied during BOM costing, either from the cost heading for the component or resource, or from the top level BOM in an assembly. This depends on your Markup % selection in the BOM Settings Costing tab.
Note: If you are costing a subassembly, and using markup percentage from the top level BOM, the subassembly's markup percentage value is used. The markup percentage value from the subassembly's parent BOM is not used.
You should have:
- Set up cost headings.
- Set costing settings in Bill of Materials.
- Set up operations on the BOM record with associated costs.
Breakdown of costs
A breakdown of costs can be seen by clicking View Breakdown on the Enter Bills of Material to Cost window.
If overheads are calculated automatically, values are broken down into the following subsets:
- Setup labour.
- Setup machine.
- Setup tooling.
- Run time labour.
- Run time machine.
- Run time tooling.
- Teardown labour.
- Teardown machine.
- Teardown tooling.
Costing history
Calculated costs are stored on the BOM record Costing tab along with the date of the costing. You can view costing history there.
You can delete costing history, in one of the following ways:
- Click Delete History Before on the BOM record Costing tab.
- Use the Delete Costing History option.
To cost BOMs
Note: You can also cost BOMs from the Trial Kitting and Maximum Build enquiries.
Open: Bill of Materials > Processing > Cost.
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Set up the list of BOMs that you want to cost.
You can:
Add individual BOMs- Click Add.
- Select the Stock Code from the drop-down list.
Add multiple BOMs- Click
next to Add. - Choose Select Multiple Bills of Material from the drop-down list.
- Select the BOMs that you want and click OK.
The Select Multiple Bill of Materials window appears.
The BOMs are added to the Enter Bills of Material to Cost window.
Add all BOMs- Click next to Add.
- Choose Add all Bills of Material.
If you are using version control, you can Add all New BOMs- Click next to Add.
- Choose Add all New Bills of Material.
If you are using version control, you can Add all Active BOMs- Click next to Add.
- Choose Add all Active Bills of Material.
If you are using version control, you can Add all New and Active BOMs- Click next to Add.
- Choose Add all New and Active Bills of Material.
Add BOM groups- Click next to Add.
- Choose Add Bill of Material Group from the drop-down list.
- Select the BOM Group that you want and click OK.
The Select Bill of Materials Group window appears.
The BOMs are added to the Enter Bills of Material to Cost window.
Add Bills of Material modified since ...- Click next to Add.
- Choose Add Bills of Material modified since.
- Enter the date from which to check for modifications to BOMs.
- Click OK to add BOMs from that date.
Add Bills of Material not costed since ...- Click next to Add.
- Choose Add Bills of Material not costed since.
- Enter the date from which to check BOMs have not been costed.
- Click OK to add BOMs from that date.
Add Bills of Material modified since last costing ...- Click next to Add.
- Choose Add Bills of Material modified since last costing.
Delete a BOM- Select an item in the list.
- Click Delete.
- Click Yes to confirm that you want to delete the selected item.
Delete all BOMs- Click next to Delete.
- Choose All Items.
- Click Yes to confirm that you want to delete all of the items.
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Enter the values for each stock item.
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If version control is in use and more than one version exists, select the Version.
You can cost new, active and obsolete versions. You might want to cost an obsolete version if you are thinking of using it for a special one-off manufacture for a customer.
- The default costing quantity on the BOM record is displayed in the Cost Quantity column.
- To cost using the costing quantity on the BOM record, leave the quantities as displayed.
- To cost each BOM using a different quantity from that on the BOM record, select each line and change the quantity required.
- To cost all BOMs using one quantity, select Cost all using quantity of and enter the quantity alongside.
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Click View Breakdown to display a breakdown of the costs.
Note: The unit cost of a manufactured item depends on the batch size. This is because setup and subcontract operations Work tasks that are subcontracted to external organisations or to other internal departments within the organisation. costs are shared by all units in the batch.
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Enter a Comment, if required, to associate with all of the costing records generated during the costing.
The comment will be displayed in the Bills of Material Workspace and on the cost history in the BOM record.
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Click Cost to cost the BOMs.
Costs are calculated using base currency The operating currency used by your company and the Nominal Ledger; other currencies are regarded as foreign.. If subcontract suppliers use foreign currency, the values are converted to base currency for costing. However, you define the costs in the supplier's currency.
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If Prompt for Subcontract Supplier is selected on the BOM Settings Costing tab and there is an active subcontract operation where more than one supplier can be used, you are prompted to choose the subcontract supplier in the Choose Subcontract Supplier window.
- If Prompt when stock level is zero or Prompt when stock item has zero costs is selected on the BOM Settings Costing tab, you are prompted to enter costs for the components listed in the Enter Component Costs window.
The Calculated Unit Cost and Suggested Selling Price are shown.
Note: The quantities will include the scrap percentage if you have selected to calculate scrap in Costing on the BOM Settings Scrap tab.