Calculating Cost and Valuation Prices

Select the Actualize Standard Cost and Revalue Inventory check box in this session, or use the Actualize Standard Cost and Revalue Inventory (ticpr2220m000) session to update the standard cost displayed in the Items - Costing (ticpr0107m000) session. Enter the following data:

  • The ranges of item groups and standard items
  • Cost calculation code
  • Standard cost calculation method

You can calculate the valuation and standard cost of standard items only. In the Calculate Standard Costs by Project (tipcs3250m000) session you can calculate the prices for customized items.

Use the Archive/Delete Cost History (ticpr2230m000) session or select the Delete Standard Cost History Data check box to remove the standard cost history data. You can only select the Delete Standard Cost History Data check box if also the Actualize Standard Cost and Revalue Inventory check box is selected. Depending on the Number of Years to Retain Standard Cost History field in the Standard Cost Calculation Parameters (ticpr0100m000) session, data is deleted during the actualization process.

Note

If you (re)calculate the standard cost for a component item without updating (the Actualize Standard Cost and Revalue Inventory check box is cleared), the standard cost of the component's parent item is not updated.

However, the changed component price is still present in the system, and will be used if you recalculate the parent item's standard cost using the Single Level method.

This can lead to an incorrect standard cost of the parent item. So, if you want to (re)calculate the standard cost for testing purposes, you must set up test cost-calculation codes. Avoid using the standard cost-calculation code for testing purposes.

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