Roll Up Product Structure Costs
After routing costs are rolled up to the base process, run Product Structure Cost Roll-Up (13.12.13) or Simulation Structure Cost Roll-Up (30.13.19) to calculate lower-level costs for the base process and to allocate those base process costs to each of the co-products.
Costs are normally rolled up for all items at a site. Ensure the range of item numbers selected for the roll up include all components, co/by-products and the base process item.
Co-product costs are calculated by Product Structure Cost Roll-Up (13.12.13) by the:
• Cost of the base process
• Allocation percent for the co-products
• Expected quantities for the co-products/by-products produced by the base process
The cost that is rolled up to the base process is a batch cost, allocated to the co-products based on the Cost Allocation field in Process/Formula Maintenance (15.18) or Co/By-Product Maintenance (15.12.1).
To arrive at the unit cost for each co-product, the batch cost is divided by the quantity per for each co-product as entered in the Quantity field in Process/Formula Maintenance (15.18) or Co/By-Product Maintenance (15.12.1).
