Rolling Up Routing Costs
Routing Cost Roll-Up (14.13.13) calculates the manufacturing costs, lead times, and total yield for one or more items at a particular site. Costs are calculated for each operation after accessing the item master, work center, routing, and standard operation data.
You can roll up either current or GL costs. The default is to roll up current costs. Although you can roll up GL costs when they change, it is safer to roll up current costs and then copy them to the GL.
Expected yield losses can be factored into cost calculations. The system computes the cumulative yield percentage based on multiplying together the operation yields for all operations. This value is posted to the item master and is used for material planning purposes. For example, yield percentages for a two-operation routing are both 90%, so the cumulative yield percent posted to the Yield% field in the item master is 81.00% (.90 * .90).
Note: Only one field for run time exists on the routing. You cannot divide run time into machine run time and labor run time. For burden calculations, the machine and the labor are both assumed to be in use for the entire run time.
Recalculate manufacturing costs whenever work center rates, routings, or processes change.
Other important fields in Routing Cost Roll-Up are:
As of Date
Enter an effective date. Roll-up calculations only consider operations that are effective on the specified date. You can enter a question mark (?) to have the system use the current date. This lets you submit the selection criteria once and then run the same batch whenever a new cost rollup is required. Any time the batch is submitted, the system sets this field to the date the batch is run.
Roll-Up Labor Time, Setup Time, and Lead Time
Often, you should set these fields to No so that the manufacturing lead time entered in the item planning data is not overwritten. This should be discussed with the planners to determine how these fields should be set. The default is Yes.
Roll-Up Item Yield
When set to Yes, the system calculates yield based on operation yield. This value is posted to the item master and is used for material planning purposes. The order quantity planned is increased to cover the expected losses, which requires more components and production time.
Include Yield in Cost
If you set the Roll-Up Item Yield field to Yes, the operation yield can be calculated into the costs. Set Include Yield in Cost to Yes to include operation yield in the cost process or No to exclude it.
Roll-Up Labor, Burden, and Subcontract Cost
This-level costs can be rolled up for individual elements or for all elements—labor, burden, and subcontract. Normally, set these fields to Yes.
Update Items Without Routings
This field determines whether cost calculations include only those items with routings, or all items. Setting this field to Yes lets you clear costs associated with obsolete routings. For example, your company decides to stop making an item and acquire it from another source. Simply deleting the routing does not clear out all of the manufacturing costs. To reset those costs to zero, set this field to Yes and run the routing cost rollup. If this item is a component, also run the product structure cost rollup.
Update Items At This Site Only
You can include only those items that exist at the specified site in the cost rollup, or create cost details at the specified site for all items in the item number range regardless of whether the item is defined at the site.