Costing BreaksFor 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:
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):
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:
You can collect and view the costs for:
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:
The hierarchical search sequence applicable for production (material and resources):
Note
The hierarchical search sequence applicable for service depot repair:
Note
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:
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).
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