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Standard Costs with Configured BOMs

Legacy Post, modified 3 Years ago.

Standard Costs with Configured BOMs

Post Date: 12/26/10 (Yoda, 1938 Posts) Recent Posts
We currently use standard costs to calculate our margin on product sales.<BR>We are looking to introduce configured part numbers, but this will stop us being able to use standard costs. Has anyone else had this problem and if so, how have you handled it? <BR>My initial idea is to somehow report the standard cost from the standard cost of the items that were chosen from the features and Options of the Configured part number.
Legacy Post, modified 13 Years ago.

Re: Standard Costs with Configured BOMs

Post Date: 12/26/10 (Yoda, 1938 Posts) Recent Posts
Once the sales order is entered and the sales order bill is created you can query on the sod_det to find the standard cost. The standard cost is kept in a field called sod_std_cost.
Legacy Post, modified 13 Years ago.

Re: Re: Standard Costs with Configured BOMs

Post Date: 12/26/10 (Yoda, 1938 Posts) Recent Posts
Robert,<BR>Thank you for your response.<BR>I'll try to create the query and if it works, you have been a great help.<BR>Thanks<BR>Mark
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Vinh Nguyen, modified 2 Years ago.

RE: Standard Costs with Configured BOMs

Post Date: 3/10/24 (Gold, 141 Posts) Recent Posts
Hello Everybody,
I've had the same problem with cost calculation for Configured Products.I found this instruction in QAD document: 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.
I finished the following settings:
  • Material Costs for component items
  • Run Time for the configured item in Routing Maint
  • Labor Rate & Burden Rate for the configured item (parent item) in Work Center Maint
Then I did the following steps:
  1. Run Routing Cost Roll-Up for the parent item => this function updated labor cost and burden cost at this-level for the parent item
  2. I also tried running Product Structure Cost Roll-Up for the parent item => it didn't work
  3. Create sales order: During order line entry, the cost was automatically updated by the system, but the total cost for the line item was not correct, it included the cost of the item I didn't choose
  4. Sales Order Shipment: the ISS-SO transaction created after this step showed labor-COGS and burden-COGS only, not showed material-COGS
I haven't found any other instructions for this process. Please advise. Thank you!
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Vinh Nguyen, modified 2 Years ago.

RE: Standard Costs with Configured BOMs

Post Date: 3/11/24 (Gold, 141 Posts) Recent Posts
Hi Everyone,
I finally found out why I couldn't run Product Structure Cost Roll-up. 'Cause all component items of the configured structure were set as optional.
After modifying the settings, the result is okay.
So the process of calculating and updating cost for a configured product as follows:
  1. Define required components of BOM in Product Structure Maintenance
  2. Define optional components of BOM in Configured Structure Maintenance
  3. Set up cost data for items in Item Cost Maintenance, Routing Maintenance, Work Center Maintenance 
  4. Run 2 roll-up programs (Routing Roll-up >> Product Structure Roll-up): the F/A (final assembly) item's cost was based on the required components
  5. Create SO and select optional components, the F/A item's cost was added with the costs of the optional items chosen during order entry
That's all about the way QAD calculates cost for configured products that I know until this time.
Hope it will help. Thank you.

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