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Cost Factors

Under the Cost Factors heading you select the price type for which you want to create a post-calculation. There are two options: Planned / Reported and Current.

Planned / Reported

If you select Planned / Reported, the post-calculation will be created using planned and reported direct labor/hour costs for the work centers. The planned costs of an order are configured during the order registration. The reported costs of an order are configured during the reporting. There will be no price differences if no cost factor changes have taken place between the time of order registration and reporting. However, there may be volume differences, both in material and in labor or work.

Current

If you select Current, you must also choose whether to use the Current or Future cost factor alternative. For example, if you want a post-calculation of an order that was run two years ago, it could be interesting to see what the manufacturing cost would be with the current cost factors for work center. If you use the alternative Planned / Reported for the above example, it will calculate what the processing cost was two years ago.

In both of the above cases, the cost factor alternative must be selected in the Alt. field. The default cost factor alternative is determined by a setting called Default Cost Factor Alternative (1-7) under the heading Work Centers under the Manufacturing tab in the Settings procedure. There are seven alternatives you can select for calculations.

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The available cost factor alternatives in the system.

Each alternative consists of a combination of the three cost factors that can be entered for the work center. If you use cost factor exceptions, which is determined by the setting Use cost factor exceptions? in the same location as the settings above in the Settings procedure, you can enter two cost factor exceptions for the work center. For an operation in the Preparation procedure, you can then select if a cost factor exception applies to a certain operation for a part. This exception is then considered when running a post-calculation for this part.

You will find additional information about cost factors in the Update Work Center chapter.