Freeze estimated order-costs

You can freeze the estimated end-item unit costs to enable a good comparison between actual and estimated unit costs. The moment of freezing estimated costs is determined by the Moment Freezing Estimates check box in the Production Order (tisfc0101s000) session.

After you freeze the estimated end-item unit costs you cannot change:

  • The estimated materials
  • The estimated hours

You can change the following according to the latest schedule changes:

  • The materials to be issued
  • The production planning
  • The materials to be issued

If you freeze the estimated costs, and if changes are made to one of the following:

  • The production planning
  • The materials to be issued

Then the change does not influence:

  • The estimated materials
  • The estimated hours

In production planning changes can occur in:

  • The scrap and yield percentages
  • Ordered quantity

When a change occur after freezing in the scrap & yield percentage, LN adjusts the planning of:

  • Following operations
  • The number of materials in the Material to Issue for Production Orders (ticst0101m100) session

If after freezing, changes are made to the ordered quantity in the production order, LN adjusts (taking Scrap & Yield factors into account) the:

  • Estimated materials and estimated hours
  • Estimated order costs
  • Material and capacity allocations
Example

A production order has the following data.

Quantity ordered = 100 pcs

OperationYieldScrapQTY planned inputQTY planned output
10100%2 pcs127125
2080%0 pcs125100

 

Assume the estimates are frozen. When changing the Yield from 80% to 50% on operation 20, the allocations of materials are updated based on the new quantities. The estimated quantity is still related to resp. 127 and 125 pieces respectively.

The new situation is as follows:

QTY planned inputQTY planned output
10202200
20200100

 

When changing QTY ordered from 100 pieces to 150 pieces the estimated costs and the planning change again. The new situation is:

QTY planned inputQTY planned output
10302300
20300150

 

The estimated material costs are based on the estimated yield of 80%, which results in the quantities 187,5 and 189,5 pieces.

Related topics