Costing Breaks

For projects involving production or service of an item (such as depot repair service), the user is required to monitor costs at various levels.

Costing breaks provide a flexible method to view the breakup of costs at various levels in a project WBS. You can use costing breaks to move the costs from the top demand project pegs to other project WBS levels. You can also identify other specific cost types such as labor, material, subcontracting, and so on to redirect the costs to the other WBS levels.

You can register the costing breaks for:

Manufacturing: for the Bill of Material (BOM) components of the item
Service: for the As-built structure of the service item

Infor LN allows you to create the multiple costing breaks for a project. When you create a costing break at a particular level in a project WBS, all the lower levels of the BOM inherit the costing break WBS links unless another costing break exists at the lower level in the BOM structure.

Example

A project PRJ001, with the element E and activity A, involves production of the End Item with the following components in the bill of material (BOM):

Assembly
Sub-Assembly 1 & Sub-Assembly 2
MFG Comp 1, MFG Comp 2, MFG Comp 3 and MFG Comp 4
Pur Comp 1 and Pur Comp 2

The peg distribution for the project is initially at the top demand item level (in this example at the End Item).

Costing breaks are created at the following levels:

Costing Break 1 - at Sub-Assembly 1
Costing Break 2 - at MFG Comp 1
Costing Break 3 - at MFG Comp 2
Costing Break 4 - at Pur Comp 2

You can collect and view the costs for:

MFG Comp 1 at the Costing Break 2 (linked to peg PRJ001, E10, A105) instead of the Costing Break 1 (linked to peg PRJ001, E10, A101) as the Costing Break 1 is replaced by the lower level Costing Break 2.
MFG Comp 2 at Costing Break 3 (linked to peg PRJ001, E10, A110) instead of Costing Break 1 (linked to peg PRJ001, E10, A101).
Pur Comp 1 at Costing Break 2 (linked to peg PRJ001, E10, A105) as there is no costing break created at Pur Comp 1.
Pur Comp 2 at Costing Break 4 (linked to peg PRJ001, E10, A115).

For the Sub-Assembly 2, MFG Comp 3, and MFG Comp 4, you can view the break up of costs at the top demand item level (the End Item linked to the peg (PRJ001, E10, A100)).

Pre-requisites to create costing breaks

Infor LN allows you to create costing breaks for projects only if the Costing Breaks check box in the Implemented Software Components (tccom0100s000) session is selected.

Costing breaks cannot be created for the projects of the type Internal and Template.

You must specify the element/activity to create costing breaks for a project. The activities used to create costing breaks must be of the type Control Account or Work Package.

Setting up costing breaks

Use the Costing Breaks (tppdm3600m000) session to create/set up costing breaks for the production material and resource costs, service depot repair material, labor, and other costs, for the project.

Note

You can also create costing breaks for blank projects with the project code not specified in the Project field in the Costing Breaks (tppdm3600m000) session. However, you must specify the standard element or a standard activity.

Search criteria for costing breaks

The search criteria that Infor LN follows; for costing breaks:

Costing breaks defined for the production resources for the specific project.
Costing breaks set up for the production resources for a blank project.
Costing breaks set up for the production material for the specific project.
Costing breaks set up for the production material for a blank project.

The hierarchical search sequence applicable for production (material and resources):

Production type	I	II	III	IV	V
Production -Material	Main item / BOM Component item	Item group / Main item	only the Main item	only the BOM Component item	Item group

Production -Resources	Main item / Routing / Operations	Main item / Routing	Work center	Cost type / Main item

Note

For production material; you can use the Import Item Groups and the Import Components options to set up costing break for multiple item groups and component items of the main item.
For production resources; you can use the Import Operations and the Import Work Centers options to set up costing break for multiple routing operations and work centers.

The hierarchical search sequence applicable for service depot repair:

Service type	I	II	III	IV	V
Service Depot Repair Material	Service item group	Installation group	Service item (Main Item)	Serialized item (Item)	Item serial number
Service Depot Repair Labor	Master routing	Routing option	Reference activity	Task
Service Depot Repair Other	Item group	Item	Cost Type level for Tooling, Subcontracting and Other costs.

Note

For service depot repair material; you can use the Import Service Item Groups and the Import Installation Groups options to set up costing break for multiple service item groups and installation groups.
For service depot repair labor; you can use the Import Master Routings option to set up costing break for multiple master routings.
For service depot repair other; you can use the Import Item Groups option to set up costing break for multiple item groups.

Copying costing breaks

Infor LN allows you to manually copy the costing break to a target project using the Copy to Other Project option in the References menu of the Costing Breaks (tppdm3600m000) session. The Copy to Other Project window opens wherein you can specify the target project. You can also use the Replace existing Costing Breaks check box to replace the existing costing breaks in the target project, if any.

Note

The Replace existing Costing Breaks check box is not displayed when you use the Copy to Other Project option from the MMT sessions.

Infor LN allows you to copy the costing break:

from an existing project to a new project
from a template to a new project
from an existing project to a template project
from an existing project to another existing project

Removing empty costing breaks

Use the Remove empty Cost Pegs in the Costing Breaks (tppdm3600m000) session, to delete the costing break lines that are not linked to a project peg (element/activity).