Costing Impact by Module

Costing interacts closely with several modules. This section summarizes these relationships.

Order/batch quantity and yield percent are used in the cost computations. The routing code and bill of material code are optional fields where you can specify a default routing and BOM other than the same code as the item.

You can specify different characteristics for the same part at different sites using the item-site maintenance programs (1.4.16, 1.4.17, 1.4.18).

Items/Sites also maintains the product line records, which specify the default GL accounts—inventory, sales, purchasing, and work orders—for each product line at a site.

• Use Purchasing Account Maintenance (1.2.5) to specify different accounts for purchases, applied overhead, PO receipts, PO price variances, and accounts payable variances by product line, site, and supplier type.

• Use Work Order Account Maintenance (1.2.9) to specify different accounts for floor stock, cost of production, WIP, and subcontract by product line and site.

• Use Inventory Account Maintenance (1.2.13) to specify different accounts for inventory, scrap, inventory discrepancy, and cost revalue by location at a site.

• Use Sales Account Maintenance (1.2.17) to specify different accounts for sales, sales discount, and COGS accounts by customer type and sales channel.

Configured Products. This module works with the Sales Orders/Invoices module to create unique product structures for individual sales orders. Once a configured item is constructed during order entry, the system accesses item master and product line data to determine and maintain the cost of the configured item for COGS purposes.

Cost Management. Use Cost Management to create multiple cost sets beyond the GL cost set and the current cost set provided with standard inventory functions. These cost sets can be GL sets, current cost sets, or they can be simulated cost sets. The system can access data from the item-site records, product structures, and routings/work centers in the development of various cost sets.

Flow Scheduling. This module lets you create flow scheduled orders and specify the sequence in which they are produced on a flow production line. Recording flow completions creates GL records for inventory receipts and issues on the associated system-maintained work order. The system uses item/site cost data to cost a GL debit or credit transaction.

Formula/Process. This module defines the contents of formula items in the same way as bills of material define fabricated and assembly items. The system uses content information, process definition data, and work center data to calculate level-by-level costs.

General Ledger. This module maintains GL transactions originating in other modules for financial reporting.

Inventory Control. This module creates GL records for receipts, issues, and cycle count adjustments. The system uses item/site cost data to cost a GL debit or credit transaction.

Kanban. This module lets you create kanban transactions that track the movement of items in and out of the production process. Kanban transactions create GL records for inventory receipts and issues. The system uses item/site cost data to cost a GL debit or credit transaction.

Physical Inventory. This module uses physical inventory counts to establish the new work-in-process and stocking location inventory balances. Costed item counts are used to determine the beginning GL amounts for the Inventory and Finished Goods accounts and inventory variance accounts.

Product Structures. This module creates and maintains multilevel parent/component relationships of manufactured products. Product structure rollup determines the item cost (GL, current, or simulated) by adding up purchased material costs and routing labor and overhead costs for each assembly level. The program posts cost data to this-level and lower-level buckets for the five cost categories in the cost set specified in the rollup.

Purchasing. This module provides the prices used to determine purchase price variances. Actual item costs can be used to compute average item inventory amounts. Users of the Accounts Payable module can include differences between invoice cost and purchase price in the average cost computation.

Repetitive and Advanced Repetitive. These modules let you charge labor, material, and burden costs for a repetitively planned item and accumulate data for the WIP and variance accounts. Work Orders and Shop Floor Control perform the same functions for work orders.

Routings/Work Centers. This module maintains the standard hours for setup and run time for manufacturing or subcontract operations used to make an item. The module also maintains the labor and overhead rates for cost centers where an operation is performed. This data is used to determine current costs and GL costs, and can also be used to create simulated costs.

Sales Orders/Invoices. This module provides shipping transaction data that results in GL transactions affecting inventory, accounts receivable, cost of goods sold, and sales accounts.

Shop Floor Control. This module lets you accumulate actual labor costs against work orders or downtime for the WIP account and assorted variance accounts.