Example of standard cost and valuation price calculation
This example describes
how standard costs and valuation prices are calculated related to surcharges,
defined on item level and on warehouse level. The difference between variable
and fixed costs is ignored in this example.
In this example, item A
has material costs of 10 dollars and operation costs of 6 dollars. Item A has
been linked to warehouse 001 (in the general item data). The surcharges are
defined as follows:
| Surcharge sequence | 1 | 2 | 3 | 4 | 5 | 6 |
|---|
| Item | A | A | A | A | A | A |
| Warehouse | ... | ... | 001 | 001 | 002 | 002 |
| Realization moment | receipt | issue | receipt | issue | receipt | issue |
| Surcharge | 2 | 4 | 3 | 5 | 1 | 6 |
Standard cost
The standard cost is the sum of the following:
Standard costs
All nonsurcharges
Valuation price on receipt in warehouse
All surcharges that are
linked to the nonspecific warehouses (surcharges 1 and 2)
Valuation price on issue from warehouses 001 and
002
All surcharges that are
linked to the standard warehouse 001 of the item (surcharges 3 and
4)
This results in the
following calculation:
| Nonsurcharges | 16 | (material
and operation costs) |
| Nonspecific
surcharges | 6 | (surcharge 1, 2) |
| Specific
surcharges | 8 | (surcharge 3, 4) |
| Standard
cost | 30 dollar |
Item A is a material of item B. If item A is linked to item B in
the BOM. The BOM warehouse is 003. To calculate the standard cost of main item
B, the material costs of item A and the surcharges of BOM warehouse 003 are
taken into account. The surcharges of item A's standard warehouse 001 are not used.
Valuation price (receipt)
The receipt valuation price is the sum of the following:
Standard Costs
All nonsurcharges
Valuation price on receipt in warehouse
All receipt surcharges
that have not been linked to specific warehouses
Valuation price on issue from warehouses 001 and
002
All receipt surcharges
that have been linked to the specific warehouse
This results in the
following calculation:
| warehouse | 001 | 002 |
|---|
| Nonsurcharges | 16 | 16 |
| Nonspecific receipt surcharges | 2 | 2 |
| Specific receipt surcharges | 3 | 1 |
| Receipt valuation price | 21 dollar | 19 dollar |
Valuation price (issue)
The issue price of an item in a warehouse is the sum of the
following:
Standard Costs
All nonsurcharges
Valuation price on receipt in warehouse
All receipt surcharges
that have not been linked to specific warehouses
- All receipt surcharges
that have been linked to the specific warehouse
Valuation price on issue from warehouses 001 and
002
All issue surcharges
that have not been linked to specific warehouses
- All issue surcharges
defined for that specific item/warehouse
This results in the
following valuation and issue prices for item A in warehouses 001 and 002:
| Warehouse | 001 | 002 |
|---|
| Nonsurcharges | 16 | 16 |
| NonSpecific receipt surcharges | 2 | 2 |
| Specific receipt surcharges | 3 | 1 |
| Nonspecific issue surcharges | 4 | 4 |
| Specific issue surcharges | 5 | 6 |
| Issue price | 30 dollar | 29 dollar |