Cost Calculation Code

A cost calculation code is the code that specifies the cost calculation data that is used to calculate a standard cost, a valuation price, or a sales price. Specific cost calculation data is stored under this code, for example:

  • Operation rates
  • Surcharges
  • Subcontracting rates
  • Simulated purchase prices

Cost calculation codes are defined in the Cost Calculation Codes (ticpr1100m000) session.

Only one cost calculation code is used to calculate the standard cost by item.

This cost calculation code is defined in the Standard Cost Calculation Parameters (ticpr0100m000) session. For customized items, the cost calculation code is defined in the Projects (tipcs2101m000) session. All other cost calculation codes are for simulation purposes. All actualized prices are saved by the date and time of calculation. Prices can be calculated many times each day.

A cost calculation code can be of type Standard Cost or Sales Price. For a sales price calculation code, surcharges are only defined at the moment the item is issued to work-in process, or as material on a service order. No warehouse surcharges can be defined. The sales price calculation code is used in the Calculate Sales Prices (ticpr2250m000) session.

The source of purchase price in the standard cost calculation can vary. If the preferred source is not available, the software takes the next option. The choices are Current Price, Latest Price, Average Price, and Simulated Price. The current, latest, and average purchase prices are stored in Procurement.

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