unit cost of finished item

lally
lally Member Posts: 323
edited 2008-07-22 in NAV/Navision Classic Client
I am reading manufacturing manual . mean while I am getting some doubts .
Iwant to make a finished item ,..

I have only one bill of material . cost = 50.
I am using workcentre . Unit cost calculation is Time.
unit cost = 2.00 (Not direct unit cost )
Unit of measure code = Minutes
Capacity = 1
Efficiency = 100.
In Routing I had given set up time = 6 Minutes, Run time == 10 Minutes.


?Now let me know th e what is My Finished item cost?
I am not understanding how my cost is calculating ?


If I change the Capacity = 3 , Efficiency = 50 .
Then how my cost will effect. ?


Please let me know the solutions .
lally

Comments

  • darshanm
    darshanm Member Posts: 280
    Namaste!

    In case of PROD. Order cost depends on
    1. Unit cost of child items in BOM

    2. Capacity utilization cost of routing.

    3. In case of setup time system calculates the time per unit
    i.e setup time/Lot size defined on item card.
    4. When output is and consumption is posted, the cost of
    raw material and capacity are aportioned on the FG item
    Darshan Mungekar
    Senior Consultan
  • AdamRoue
    AdamRoue Member Posts: 1,283
    It also depends what your costing method is!
    The art of teaching is clarity and the art of learning is to listen
  • santoshmkcet
    santoshmkcet Member Posts: 229
    lally,

    well there are two levels of costing,

    single & multi level,

    in single level cost is calculated based on bom

    in multi level cost is calculated based on bom + routing

    If you are not clear then ask in an elaborate way for me to explain.

    santosh
    Thanks & Regards
    Santosh
    Where Stones can be transformed to Gold
  • lally
    lally Member Posts: 323
    Thanks santosh ,

    It’s good to meet u through this forum.

    If u feel free could give a good example to understand easily with some transactions.

    I am expecting a positive response .


    Thanks and regards
    lally
  • santoshmkcet
    santoshmkcet Member Posts: 229
    Lally ,

    Nice to meet u too in this forum.

    And coming bak to the prob,

    For eg. If item item A cost Rs 10 per kg

    Item B consist of 10 kg of item A. ( Creat a BOM for item B)

    Then goto item master, pick item B, goto Item tab - Manufacturing Calculate std cost. U will get Rs 100 as cost of Item B.

    if item B is produced after consuming item A in machine C ( Creat routing for item B )

    In machine C assign Rs 10 as unit cost.

    Now Then goto item master, pick item B, goto Item tab - Manufacturing Calculate std cost. U will get Rs 110 as cost of Item B.

    Now try entering the Indirect & Overhead rate seperatly for learning what changes happen to the item cost of item A & B.

    Enough for now. :roll:

    Bye.

    Santosh :oops:
    Thanks & Regards
    Santosh
    Where Stones can be transformed to Gold

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