Calculation of cost/valuation prices for standard/customized/STO itemsAn item's standard cost is a calculated price that provides an estimation of the item's value. The standard cost of a manufactured item consists of material costs, operation costs, and end-item surcharges. For more information, refer to Standard cost. Note If multisite functionality is active, standard cost is calculated per combination of item and enterprise unit. Use the Calculate Standard Cost (ticpr2210m000) session to calculate standard costs and valuation prices. Depending on the value of the Standard Cost Calculation Method field, LN determines how the product structure is analyzed during cost calculation. For more information, refer to Cost calculation methods. 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. For more information, refer to Cost Calculation Code. The topic below describes a single-level cost calculation by ERP for items of the following types:
The costs of a routing's last operation are calculated first. After that, the previous operations are calculated, one by one. For a schematic overview refer to Cost calculation flow chart.
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