| Standard Cost Calculation by ProjectYou can calculate a simulated standard cost for all project types. During a simulation, LN calculates, and
updates the standard costs of customized items in the Standard Cost Calculation module. In the Project Control module, inventory is not revalued and the project price and
the customized item price are not updated. You can perform: - Simulated standard cost calculations
- Estimated standard cost
calculations
- Actual standard cost calculations
The following steps
are taken if an estimated calculation of the
standard cost is calculated: Step 1. LN calculates the standard cost of all customized items. The standard costs are
updated in the Standard Cost Calculation module. Note LN calculates the standard cost of customized
items by using the cost calculation code of the project. This code is stored in the Projects (tipcs2101m000) session. Step 4. LN calculates the estimated project costs. Estimated project costs consist of the
following costs: - Item costs of all
project parts in the Project Parts (tipcs2111m000) session. For standard project parts, LN uses the standard cost
that is valid on the date as entered in the Freeze Standard Cost on Date field of the Project Parts (tipcs2111m000) session. Standard parts are moved into the project on
the three aggregated cost components. For customized parts, the estimated item
costs are calculated as described above. These are stored in the detailed cost
component in the Standard Cost by Customized Item (tipcs3550m000) session.
Note Main projects do not have items assigned. - Activity costs.
Activity costs are produced if you perform activities as defined in the Activities (tipcs4101m000) session. The operation rate code, linked
to the task or work center of the activity (dependent on the value of the Type of Operation Rates parameter in the Standard Cost Calculation Parameters (ticpr0100m000) session), is used to determine
the activity costs. LN does not take activity costs into account if:
- The Engineering Allowed check box in the Projects (tipcs2101m000) session
is not selected.
- The Activity Estimation check box in the Activities (tipcs4101m000) session is not selected.
- Estimated project
surcharges. If no estimated surcharges are defined for a sub project, LN takes the surcharges
assigned to the main project. When estimated project charges cannot be found
for a specific project, LN determines the estimated general surcharges
for projects.
LN does not take surcharges for projects into
account when the Engineering Allowed check box in the Projects (tipcs2101m000) session
is not selected. - For a main project,
the costs of all sub projects are added to the costs of the main project.
Step 5. LN stores the estimated project costs in the Standard Cost by Project (tipcs3560m000) session. For main, sub, and
single projects, the budgeted costs are filled with the estimated costs of the
linked budget (from which the project is derived). For a budget, the budgeted
costs are always empty. Only the estimated costs are filled. Step 6. LN updates the last calculation date for projects of the Budget type. Note LN calculates the standard cost of customized
items by using the cost calculation code of the project. This code is stored in
the Projects (tipcs2101m000) session. Standard to order items If a standard item with the order
policy standard-to-order (STO) item
is linked to a project, the cost
calculation program analyzes the complete standard to order
structure. This complete
standard to order structure is analyzed as if it were a customized item product
structure. This product structure is then automatically exploded to the generic
items level. This means that standard items made to order do not have to be
included in the product structure to perform a correct calculation of material
and operation costs. As a result, any
advantages resulting from batch production, in relation to setup costs, are not
visible in the estimated project calculation. This applies if the same standard
item made to order is linked to the project structure several
times. Standard phantom items Comments referring
to standard items made to order, also apply to standard phantom items linked to a
project. The standard phantom structure is automatically analyzed by the cost
calculation program. During this process, material and operation costs are
included in the cost calculation of the project for phantoms. Comments made
regarding batch production and lowering setup costs do not apply to phantoms.
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