Standard costEvery item in LN must have a standard cost before you can generate orders for the item. The item's standard cost is set up by logistic company or by enterprise unit. The standard cost serves as a basis for the item's valuation price and can be calculated multiple times each day. Each calculation is stored. The standard cost is calculated in the Standard Cost Calculation (CPR) module. If you want to examine the effect of changes of the item in LN, you can also simulate costs for an item in this module. To calculate the standard cost of an item, LN requires standard information that affects the costs, such as the materials that are used for the item (derived from the BOM), the hours that are spent to produce the item (derived from the routing), and the surcharges that apply (derived from the master data). BOM The bill of material (BOM) is used in cost calculation to determine the required materials to produce an item. An item's BOM provides information on:
Routing The routing is used in cost calculation to determine the number of man hours and machine hours required to produce an item. An item's routing provides information on:
Surcharges Surcharges are estimates to cover for indirect costs during production, for example, the costs of order intake, the costs of inspections, or the costs of depreciation of machines and buildings. Surcharges can be defined for items or warehouses. For more information, refer to Surcharges. In LN, a price calculation code stores the price calculation data that is used to calculate the cost. The standard price calculation code specified in the Standard Cost Calculation Parameters (ticpr0100m000) session, stores data to calculate the standard cost. Other price calculation codes store the data for simulation purposes.
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