Hi. These costs would most likely sit under either Overhead or Burden. By definition, Overhead would contain fixed overhead costs, such as rent, and Burden would contain variable overhead costs that vary with the amount of production, such as the electric utility bill (which may go up or down depending on the amount of production that occurred that month). When burden or overhead costs are placed on an item that rolls up into a higher level item (ie a make item), these costs would roll up to that higher level item when you run the cost roll up. You can update item costs in Item-Site Cost Maintenance.  

Thank you Andrea for your quick response. I would like to be able to perform profit analysis for each product using QAD but currently SGA costs are not included in our Standard cost. Reason given to me is that Standard cost should include only direct cost (Labor) , indirect Manufacturing cost (such as Indirect labor, Depreciation )(Burden) and Fright (Overhead) . In order to perform Profitability analysis, is there any other place in QAD where I can add SGA cost if it needs to remain excluded from the standard cost?

The system allows you to create simulation cost sets (Type = SIM) where you can perform what-if anaylsis. I'd recommend creating a SIM cost set and copying your Standard costs into your SIM cost set. Then you can manipulate your SIM costs without impacting standard cost. You can then look at item cost for your particular SIM cost set. There's a helpful process map outline within QAD EE that takes you through the simulation process step by step. I'm not sure what version you're on, but in EE, if you're looking at your home page, click into the vertical that's relevant to you (if not already defaulted), then click to the "Finance" node (bottom left), then "Cost - Simulations" (bottom two from the left) and that will take you to the process map I'm talking about. Hope this helps!

We have developed add-on module for QAD to calculate real fifo costs, add dependent costs to material value and perform real profitability calculation for products based on real and correct  fifo costs. SGA costs are retreived from GL accounts based on defined algorithms. Using this add-on customer is able to get real costs by each product, not approximated value. 

Thank you for your information. Please share add-on module for my reference.

Note that SG&A costs are not allowed to be incluced in the value of inventory,  they are a period expense.

  A separate analysis of these costs could be allocated back to items for reporting purposes, but would not expect it to be in the Inventory value.

 

 

 

 

Jeff, Thank you!  Is there any facility in QAD to allocate SG&A for reporting purpose without impacting Inventory Value.

Add-on for costing is named ACM (Advanced Costing Modules). Here is link to https://www.qad.com/about/partners#m2m

Tomaz do you have more information on the ACM (Advanced Costing Modules) and who the partner may be.  I had asked about partners for Cost and Budgets but was told QAD has none.