Calculate Standard Cost (ticpr2210m000)

Use this session to calculate the valuation price and the standard cost according to a cost calculation code.

Performance aspects

The settings in this session could affect system performance and database growth. For more information, refer to Delete item costing data.

Note

An extra tab is added to the session, if a user configuration is created in the Parallel Processing Configuration (ttaad7520m000) session.

 

Selection
Standard Cost Calculation Method

The specified method indicating how LN goes through the product structure when calculating the standard cost.

Calculation Data
Cost Calculation Code

A specification of how a standard cost, valuation price, or sales price is calculated. The code stores specific cost calculation data.

The price calculation code that is defined in the Standard Cost Calculation Parameters (ticpr0100m000) session determines the standard cost. Other cost calculation codes are used for simulation purposes. The price calculation code for customized items is stored by project.

Example
  • Specific operation rates
  • Subcontracting rates
  • Simulated purchase prices
  • Surcharges
Calculation Date

This date is used to simulate the standard cost/valuation calculation on a date that either precedes or follows the current date. Based on the standard cost calculation date, LN automatically simulates the structure and composition of the product and the routing. By default, LN shows the current date.

Selection Range
Enterprise Unit

A financially independent part of your organization that consists of entities such as departments, work centers, warehouses, and projects. The enterprise unit's entities must all belong to the same logistic company, but a logistic company can contain multiple enterprise units. An enterprise unit is linked to a single financial company.

When you carry out logistic transactions between enterprise units, these are posted in the financial companies to which each enterprise unit is linked. You can define intercompany trade relationships between enterprise units to determine the terms for internal trade between these units. To use invoicing and pricing between enterprise units, you must link the enterprise units to internal business partners.

You can use enterprise units to do separate financial accounting for parts of your business. For example, you can define enterprise units for separate parts of your organization that belong to one logistic company, but that are located in different countries. The accounting of each enterprise unit is performed in each country's national currency, and in the financial company linked to the enterprise unit.

Note

Only visible if Standard Cost per Enterprise Unit in the Implemented Software Components (tccom0100s000) session is Active.

Item Group

A group of items with similar characteristics. Each item belongs to a particular item group. The item group is used in combination with the item type to set up item defaults.

Item

The raw materials, subassemblies, finished products, and tools that can be purchased, stored, manufactured, and sold.

An item can also represent a set of items handled as one kit, or which exist in multiple product variants.

You can also define nonphysical items, which are not retained in inventory but can be used to post costs or to invoice services to customers. The examples of nonphysical items:

  • Cost items (for example, electricity)
  • Service items
  • Subcontracting services
  • List items (menus/options)
Cost Calculation Code

A specification of how a standard cost, valuation price, or sales price is calculated. The code stores specific cost calculation data.

The price calculation code that is defined in the Standard Cost Calculation Parameters (ticpr0100m000) session determines the standard cost. Other cost calculation codes are used for simulation purposes. The price calculation code for customized items is stored by project.

Example
  • Specific operation rates
  • Subcontracting rates
  • Simulated purchase prices
  • Surcharges
Calculation Date

This date is used to simulate the standard cost/valuation calculation on a date that either precedes or follows the current date. Based on the standard cost calculation date, LN automatically simulates the structure and composition of the product and the routing. By default, LN shows the current date.

Options
Only Items without Standard Cost

If this check box is selected, standard cost and valuation prices are calculated for those items for which a standard cost is not already calculated.

Note

If you select this check box, existing standard costs are not recalculated, so they stay the same. However, the standard costs could be wrong due to changes afterwards.

When the standard cost already exists for a (configured) item, and you change something afterwards, you must recalculate the standard cost by using this session. In that case this check box must be cleared.

Include Standard Subassemblies

If this check box is selected, the standard cost of all standard subassemblies is calculated. When Only Items without Standard Cost check box is also selected then subassemblies without standard cost are calculated.

Note

This field is displayed only when the Customer Furnished Materials check box in the Implemented Software Components (tccom0100s000) session is selected.

Exclude Configured Standard Items

If this check box is selected, valuation prices and/or standard costs for configured standard items are not calculated.

If you run the Generate (Project) Structure for Product Variant (tipcs2220m000) session, an anonymous item that is part of a generic BOM becomes a configured standard item. For the configured standard item, a new, non-customized item code is generated. In this way, you can configure an item without using a PCS project.

Related topics

Actualize Standard Cost and Revalue Inventory

If this check box is selected, the standard costs and/or the valuation prices are updated.

LN changes the values of the following fields in the Item - Costing (ticpr0107m000) session:

If the Backdate Valuation Price Allowed check box in the Standard Cost Calculation Parameters (ticpr0100m000) session and the Actualize Standard Cost and Revalue Inventory check box are selected, you can specify a date in the past to actualize prices. Therefore, select Last Date of Previous Period or Specific Date as the effective date.

Note
Effective Date

You can specify the effective date of the valuation price or the standard cost, which can be the current date or a date in the past.

If the Actualize Standard Cost and Revalue Inventory check box is selected, and the Backdate Valuation Price Allowed check box in the Standard Cost Calculation Parameters (ticpr0100m000) session is also selected, you can specify for which date the valuation price or standard cost is calculated or actualized.

Possible values

  • Current Date
    The date for which the valuation price is calculated or actualized is the current date.
  • Last Date of Previous Period

    The date for which the valuation price is calculated and actualized is the last date of the previous period.

  • Specific Date

    The date for which the valuation price is calculated and actualized is a date in the past, which you can enter in the Specific Date field.

Note

If you select the Last Date of Previous Period option, you can also select the Reverse to original inventory value at start of current period check box on the Market Value tab. For more information, refer to Lower of cost or market value

If you click Specific Date, you can enter a date in the past in this field.

Delete Standard Cost History Data

If this check box is selected, standard cost history data is removed when the standard cost data is actualized. Which standard cost history data is removed depends on the value of the Retain Standard Cost History field in the Standard Cost Calculation Parameters (ticpr0100m000) session.

Performance aspects

The setting of this field could affect system performance and database growth. For more information, refer to Remove item standard costing data.

Print Hours Values

If this check box is selected, production hours values are included in the report.

Market Price
Inventory Value Based on Lower of Cost or Market Value

You can base the value of inventory on the original purchase prices or the market values.

If this check box is selected, and the market values are lower than the purchase prices, the market values are used to value inventory. This method is called lower of cost or market value (LCMV).

If this check box is cleared, purchase prices are used to determine the inventory value.

Reverse to original inventory value at start of current period

Using lower of cost or market value (LCMV) to value inventory can result in an inventory value that differs from the inventory value that is calculated based on the original purchase prices. If the effective date is the last day of the previous financial period (the Last Date of Previous Period option is selected), you can use this check box to determine whether the inventory value is based on LCMV or on the original purchase prices at the start of the current financial period:

  • If this check box is selected, LN uses the original inventory value when starting the current financial period.
  • If this check box is cleared, LN uses the inventory value based on LCMV when starting the current financial period.
Note

You can only select or clear this check box if:

  • Your inventory valuation price is actualized: The Actualize Standard Cost and Revalue Inventory check box is selected.
  • You use LCMV to value inventory: The Inventory Value Based on Lower of Cost or Market Value check box is selected.
  • The effective date is the last date of the previous financial period: The Last Date of Previous Period option is selected.
Value used if Purchase Receipts Exist After Last Market Value Date

If new purchase receipts exist after the date that market values are entered for the last time, you must select which price to use to calculate the inventory value. You can choose between the following options:

  • Last Available Order Price
    The purchase price on the last available purchase order is used to calculate inventory value.
  • Last Available Market Value
    The last available market value entered in the Market Values (whina1118m000) session is used to calculate inventory value.
Note

You can only select these options if the Inventory Value Based on Lower of Cost or Market Value check box is selected.

Parallel Bshells
Nr parallel Bshells

The number of servers (bshells) that calculate and actualize cost and valuation prices.

Batch size

The number of items that are submitted to one of the parallel servers (bshells) to calculate and actualize cost and valuation prices.