Selection of routing to calculate costs

The routing used for the calculation depends on the following settings:

• If the Quantity-dependent Routing checkbox in the Item - Production (tiipd0101m000) session is cleared, LN checks the default routing that is defined in the Job Shop Master Data Parameters (tirou0100m000) session. If that default routing code is also linked to the item and site combination in the Item - Routings (tirou1101m000) session, the default routing is used in the item's standard cost calculation. If the default routing is not linked to the item and site combination, no routing is used in standard cost calculation.

• If the Quantity-dependent Routing checkbox in the Item - Production (tiipd0101m000) session is selected, more than one Order quantity dependent routings can be linked to an item. If the production order quantity of the item is unknown at the moment of setup, you must estimate the quantity to determine which routing is applicable. The order quantity is derived from the item ordering data defined in the Item - Ordering (tcibd2100m000) session:

  • If the Method field is Fixed Order Quantity, routing selection is based on the number in the Fixed Order Quantity field.
  • If the Method field has another value, routing selection is based on the number in the Economic Order Quantity field. To select a routing, LN compares the value in the Fixed Order Quantity field or the Economic Order Quantity field with the value in the Up to Quantity field in the Item - Routings (tirou1101m000) session.

In production orders, a routing is used to calculate production order costs and to determine the production order lead time. In the Routing field in the Production Order (tisfc0101m100) session, the applicable routing is displayed. Dependent on the setting of the Quantity-dependent Routing checkbox in the Item - Production (tiipd0101m000) details session, the default routing, or an order quantity dependent routing is selected in the Routing field. The routing is determined as follows:

• If the Quantity-dependent Routing checkbox in the Item - Production (tiipd0101m000) details session is cleared, LN checks the default routing that is defined in the Job Shop Master Data Parameters (tirou0100m000) session. If that default routing code is also linked to the item in the Item - Routings (tirou1101m000) session, the default routing is displayed in the Routing field. If the default routing is not linked to the item in the Item - Routings (tirou1101m000) session, the Routing field will be empty.
• If the Quantity-dependent Routing check box in the Item - Production (tiipd0101m000) details session is selected, more than one (order-quantity-dependent) routing can be linked to an item in the Item - Routings (tirou1101m000) session. The number entered in the Quantity Ordered field in the Production Orders (tisfc0501m000) details session determines which of the order quantity dependent routings is displayed in the Routing field.