The system uses the existing routing cost roll-up and product cost roll-up routines in QAD EA to calculate the costs of manufacturing an item. In order to do this, QAD EA takes into account the various types of costs that appear in the product structure of the item. Because QAD Configurator adds the product structure of the items that you configure to the QAD EA database, the cost roll-up functionality is incorporated in QAD Configurator as well. Calculating the costs for an item involves adding the following five types of costs:
• Material costs
• Labor costs
• Burden costs
• Subcontract costs
• Overhead costs
The roll-up of the total costs consists of one product structure roll-up and one or more routing roll-ups.
When a routing roll-up has been completed on every level in the product structure and a product structure roll-up has been done for the top-level item, costs of the lower levels and costs of this level can be added. They constitute the total costs of the top-level item.
For more information on product costing, see either the Costing chapter in User Guide: QAD Financials or User Guide: Costing, depending on your product version.