You use this program to generate a hierarchical (vertical) view of structure and routing values based on the structure of the components.
The report shows apportionment of batch-related (i.e. setup, startup and teardown) costs and thus provides a real view of product costs. Cost accountants can use this report to gain a better understanding of cost development.
| Field | Description |
|---|---|
| Stock code selection | |
| Stock code | Indicate the stock item for which you want to print the
report. The item must be a made-in, a phantom part, a notional part, a co-product or a subcontract item. |
| Rev/Rel | Indicate the revision and release of the parent item
for which you want to generate a costing profile. This only applies if the stock code you selected is defined as ECC controlled (Stock Code Maintenance). |
| Routing | Indicate the routing according to which you want to
select stock items for printing on the report. A routing must be indicated if you enabled the option: Alternate routings required (Bill of Materials Setup - General), otherwise the report will be blank. |
| Qty to make | Indicate the quantity of the parent part you want to make. |
| Cost basis | |
| Cumulative |
Select this to select a single cost basis for valuation of the report. This is useful in tracking and establishing major contributors to the costs of a product. |
| Comparative | Select this to select two cost valuations for comparison. |
| Base |
Select the type of cost on which to base the report. One of the following can be selected:
|
| Comparative |
Select the type of cost to use for the cost basis comparison. This option is only enabled if you selected a Comparative Cost basis. One of the following can be selected:
|
| Print manufacturing u/m quantities | This applies if you are using Manufacturing
unit of measure (WIP Setup - General
2 tab). In addition, you need to have defined a
Manufacturing unit of measure for the
relevant stock items (Stock Code Maintenance) and used the
Manufacturing unit of measure in the
Bills of Materials. Select this to print the manufacturing unit of measure for the quantities on the report. If you do not select this option, then the stocking unit of measure for the quantities is printed. |
These options enable you to apply a theme to the report and to define multiple output destinations for the report once it has been compiled (SRS Output Options).
The Line Value displayed against the parent item is the total value of components based on the Inventory warehouse cost.
The line value printed against the parent item is based on what is on file (i.e. BOM costs, Inventory costs, etc). It is not the sum of what has been calculated against the individual components. For example, if you change the rate of an operation or the cost of a component without running the Cost Implosion, then the change is reflected against the component line value, but it is not reflected in the total line value for the parent item. The sum of the line values for the components will only equal the total line value against the parent item when you run the Cost Implosion and transfer the BOM costs to your warehouse costs.
Because the costs developed by this report are based on the batch quantity of the parent part, calculated values may differ from that generated using the Cost Implosion program, which performs a level-by-level computation.
Your view of batch quantities determines which you consider more accurate.
This also applies when using standard costing.
To prevent rounding differences in costs between the various costing programs (e.g. Inventory Query cost analysis, Costing Query and Costing Report) you should run the Cost Implosion together with the option: Update unit run times enabled.