| Difference between order costs, FTP, and standard cost
price.The calculation procedure
of the estimated order costs is basically the same as the calculation of the
standard cost price and the FTP inventory valuation-method price. This text only
discusses the differences. - The calculation of the estimated order costs uses other data
sources. The estimated order costs are based on the:
- Ordered quantity in
the production order
- Estimated materials
- Production planning
- The actual materials costs and the estimated material costs
consist of aggregated cost components. This is in contrast with the cost-price
calculation, which is based on detailed cost components.
- The cost price calculation does not include the calculation of
phantom components. For estimated production order costs, the phantom items are
included and calculated by detailed cost component. The planned quantity of the
phantoms is determined by a lot-for-lot explosion.
- For the estimated order costs, only the item receipt surcharges
(for end items) are calculated.
- The fixed costs are excluded from the estimated order costs,
if one of the following check boxes is cleared:
- The Include Fixed Costs in Valuation Price check box in the Cost Price Calculation Parameters (ticpr0100m000) session.
- The Include Fixed Costs in Project Valuation check box in the Project Control Parameters (tipcs0100m000) session.
- The calculation is influenced by the Financial Transactions by Work Center check box in the Shop Floor Control Parameters (tisfc0100s000) session. If the Production Results on Work
Center check box is selected, for every operation the estimated order cost is
accumulated from this operation and from previous operations. The amount is
stored on the WIP transfer cost component.
- Estimated order costs do not lead to financial transactions.
The estimated order cost are used for:
- the determination of
the production results
- WIP transfer prices
- preclosure posting
of surcharges.
- Subcontracting is the process of outsourcing a part of the
production process to a supplier. Two types occur:
- Unplanned
subcontracting
- Planned
subcontracting
The order estimate
always includes costs for subcontracting. | |