Calculate Standard Cost (ticpr2210m000)

Field Information

Selection

Standard Cost Calculation Method

The specified method indicating how LN goes through the product structure when calculating the standard cost.

Allowed values

Top-Down

For each item within the specified range LN calculates the actual cost structure, based on product-structure data, actual operation rates, subcontracting rates, (simulated) purchase prices, and cost surcharges by item or item group. This only applies to the selected item and all items that occur at a lower level in the multilevel bill of material.

Bottom-Up

LN searches for items at higher levels by means of a where-used process. These items are included in the cost calculation process. When the where-used process is ready, the price of all items is calculated. So, bottom-up means that LN calculates the price of each item that could change because of a change in the price of the selected item. The prices of items that are on a lower level in the BOM are not calculated.

You can use this method if you want to know the final standard cost of an end product after changing the purchase price of a purchased part.

Single Level

For each item within the specified range LN recalculates its standard cost and valuation price. However, LN does not adjust the standard costs and valuation prices of items that occur at a lower level in the structure. The existing cost structure of the underlying structure is adopted.

Calculation Data

Cost Calculation Code

cost calculation code

Calculation Date

This date is used to simulate the standard cost/valuation calculation on a date that either precedes or follows the current date. Based on the standard cost calculation date, LN automatically simulates the structure and composition of the product and the routing. By default, LN shows the current date.

Selection Range

Enterprise Unit

enterprise unit

Note: Only visible if Standard Cost by Enterprise Unit in the Implemented Software Components (tccom0100s000) session is Active.

Item Group

item group

Item

item

Options

Only Items without Standard Cost

If this check box is selected, standard cost and valuation prices are calculated for those items for which a standard cost is not already present.

Note: 

• If this check box is selected, existing standard costs are not recalculated. If changes have been made to the item data since calculation, the standard costs may no longer be accurate.
• If this check box is cleared, standard costs are calculated for new items, and recalculated if already present, if changes have been made to the item master data.

Include Standard Subassemblies

If this check box is selected, the standard cost of all standard subassemblies is calculated. When Only Items without Standard Cost check box is also selected then subassemblies without standard cost are calculated.

Note: This field is displayed only when the Customer Furnished Materials check box in the Implemented Software Components (tccom0100s000) session is selected.

Exclude Configured Standard Items

If this check box is selected, valuation prices and/or standard costs for configured standard items are not calculated.

If you run the Generate (Project) Structure for Product Variant (tipcs2220m000) session, an anonymous item that is part of a generic BOM becomes a configured standard item. For the configured standard item, a new, non-customized item code is generated. In this way, you can configure an item without using a PCS project.

Parallel Bshells

Nr parallel Bshells

The number of servers (bshells) that calculate and actualize cost and valuation prices.

Batch size

The number of items that are submitted to one of the parallel servers (bshells) to calculate and actualize cost and valuation prices.

Actualize Standard Cost and Revalue Inventory

If this check box is selected, the standard costs and/or the valuation prices are updated.

LN changes the values of the following fields in the Item - Costing (ticpr0107m000) session:

• Standard Costs
• Material Costs
• Operation Costs
• Last Actualization Date

If the Backdate Valuation Price Allowed check box in the Standard Cost Calculation Parameters (ticpr0100m000) session and the Actualize Standard Cost and Revalue Inventory check box are selected, you can specify a date in the past to actualize prices. Therefore, select Last Date of Previous Period or Specific Date as the effective date.

Note: 

• The inventory on hand is revalued.
• You can also actualize the standard cost or valuation price in the Actualize Standard Cost and Revalue Inventory (ticpr2220m000) session.

Effective Date

You can specify the effective date of the valuation price or the standard cost, which can be the current date or a date in the past.

If the Actualize Standard Cost and Revalue Inventory check box is selected, and the Backdate Valuation Price Allowed check box in the Standard Cost Calculation Parameters (ticpr0100m000) session is also selected, you can specify for which date the valuation price or standard cost is calculated or actualized.

Possible values

• Current Date

  The date for which the valuation price is calculated or actualized is the current date.

• Last Date of Previous Period

  The date for which the valuation price is calculated and actualized is the last date of the previous period.

• Specific Date

  The date for which the valuation price is calculated and actualized is a date in the past, which you can enter in the Specific Date field.

Note: 

If you select the Last Date of Previous Period option, you can also select the Reverse to original inventory value at start of current period check box on the Market Value tab. For more information, refer to Lower of cost or market value

If you click Specific Date, you can enter a date in the past in this field.

Delete Standard Cost History Data

If this check box is selected, standard cost history data is removed when the standard cost data is actualized. Which standard cost history data is removed depends on the value of the Retain Standard Cost History field in the Standard Cost Calculation Parameters (ticpr0100m000) session.

For more information, refer to Remove Standard Cost History Data (ticpr2230m000).

Performance aspects

The setting of this field could affect system performance and database growth. For more information, refer to Remove item standard costing data.

Print Hours Values

If this check box is selected, production hours values are included in the report.

Market Value

Inventory Value Based on Lower of Cost or Market Value

You can base the value of inventory on the original purchase prices or the market values.

If this check box is selected, and the market values are lower than the purchase prices, the market values are used to value inventory. This method is called lower of cost or market value (LCMV).

If this check box is cleared, purchase prices are used to determine the inventory value.

Reverse to original inventory value at start of current period

Using lower of cost or market value (LCMV) to value inventory can result in an inventory value that differs from the inventory value that is calculated based on the original purchase prices. If the effective date is the last day of the previous financial period (the Last Date of Previous Period option is selected), you can use this check box to determine whether the inventory value is based on LCMV or on the original purchase prices at the start of the current financial period:

• If this check box is selected, LN uses the original inventory value when starting the current financial period.
• If this check box is cleared, LN uses the inventory value based on LCMV when starting the current financial period.

Note: 

You can only select or clear this check box if:

• Your inventory valuation price is actualized: The Actualize Standard Cost and Revalue Inventory check box is selected.
• You use LCMV to value inventory: The Inventory Value Based on Lower of Cost or Market Value check box is selected.
• The effective date is the last date of the previous financial period: The Last Date of Previous Period option is selected.

Value used if Purchase Receipts Exist After Last Market Value Date

If new purchase receipts exist after the date that market values are entered for the last time, you must select which price to use to calculate the inventory value. You can choose between the following options:

• Last Available Order Price

  The purchase price on the last available purchase order is used to calculate inventory value.

• Last Available Market Value

  The last available market value entered in the Market Values (whina1118m000) session is used to calculate inventory value.

Note: You can only select these options if the Inventory Value Based on Lower of Cost or Market Value check box is selected.