Example of cost and valuation price calculation
This example describes
how cost prices and valuation prices are calculated related to surcharges,
defined on item level and on warehouse level. The difference between variable
and fixed costs is ignored in this example.
In this example, item A
has material costs of 10 dollars and operation costs of 6 dollars. Item A has
been linked to warehouse 001 (in the general item data). The surcharges are
defined as follows:
| Surcharge sequence | 1 | 2 | 3 | 4 | 5 | 6 |
|---|
| Item | A | A | A | A | A | A |
| Warehouse | ... | ... | 001 | 001 | 002 | 002 |
| Realization moment | receipt | issue | receipt | issue | receipt | issue |
| Surcharge | 2 | 4 | 3 | 5 | 1 | 6 |
Questions:
- What is the cost price?
- What is the valuation
price on receipt in the warehouse?
- What is the valuation
price on issue of item A in warehouses 001 and 002?
Standard cost price
The standard cost price is the sum of the following:
- All nonsurcharges
- All surcharges that are
linked to the nonspecific warehouses (surcharges 1 and 2)
- All surcharges that are
linked to the standard warehouse 001 of the item (surcharges 3 and
4)
This results in the
following calculation:
| Nonsurcharges | 16 | (material
and operation costs) |
| Nonspecific
surcharges | 6 | (surcharge 1, 2) |
| Specific
surcharges | 8 | (surcharge 3, 4) |
| Standard cost
price | 30 dollar |
Note
For example, item A is
a material of item B. In other words, item A is linked to item B in the BOM.
The BOM warehouse is 003. To calculate the cost price of main item B, the
material costs of item A and the surcharges of BOM warehouse 003 are taken into
account. The surcharges of item A's standard warehouse 001 are not used.
Valuation price (receipt)
The receipt valuation price is the sum of the following:
- All nonsurcharges
- All receipt surcharges
that have not been linked to specific warehouses
- All receipt surcharges
that have been linked to the specific warehouse
This results in the
following calculation:
| warehouse | 001 | 002 |
|---|
| Nonsurcharges | 16 | 16 |
| Nonspecific receipt surcharges | 2 | 2 |
| Specific receipt surcharges | 3 | 1 |
| Receipt valuation price | 21 dollar | 19 dollar |
Valuation price (issue)
The issue price of an item in a warehouse is the sum of the
following:
- All nonsurcharges
- All receipt surcharges
that have not been linked to specific warehouses
- All receipt surcharges
that have been linked to the specific warehouse
- All issue surcharges
that have not been linked to specific warehouses
- All issue surcharges
defined for that specific item/warehouse
This results in the
following valuation and issue prices for item A in warehouses 001 and 002:
| Warehouse | 001 | 002 |
|---|
| Nonsurcharges | 16 | 16 |
| NonSpecific receipt surcharges | 2 | 2 |
| Specific receipt surcharges | 3 | 1 |
| Nonspecific issue surcharges | 4 | 4 |
| Specific issue surcharges | 5 | 6 |
| Issue price | 30 dollar | 29 dollar |