Costing breaks in Enterprise Planning and Manufacturing
In Manufacturing, the cost on a project is absorbed by a project account. With costing breaks, you can model dedicated project accounts for specific items and operations. You can define costing breaks at the lowest level such as item code or routing and operation, or at a generic level such as item group, assembly, operation type, or work center.
You can specify costing breaks for production resources and materials in the Costing Breaks (tppdm3600m000) session. When a production order is created, Enterprise Planning searches for costing breaks that can be applied to the new production order.
Costing breaks in the bill of material
Costing breaks override a project peg distribution of actual supply orders and move the related costs to different WBS levels on the same project.
Costing breaks are used to assign and track costs in Project. On a multilevel bill of material, costing breaks can be added on different levels. These costing breaks are indicated by lower level project peg codes for components, which differ from their parent item's project peg. Costs are moved from the main project peg to pegs that collect specific types of costs such as labour, material, subcontracting, or machine costs. In the BOM, you can apply costing breaks to routings, operations, work centers, or cost types. Multiple costing breaks can be applied to a BOM at the same time.
Costing breaks for nonpegged items
If the Costing Breaks check box is selected in the Implemented Software Components (tccom0100s000) session, before you can apply costing breaks to items, items must have a project peg distribution linked.
You can apply Costing breaks to nonpegged items. If the item is nonpegged, the Inherit Project Peg check box in the Items (tcibd0501m000) session determines how a project peg distribution is linked to these items. If this check box is selected, the item is treated as pegged and will have a peg distribution generated. If this check box is cleared, and no costing break is found for the nonpegged item during creation in, for example, the estimated materials, the order header project pegs are copied to the project peg distribution of the nonpegged item.
This table shows the actions after which a costing break lookup takes place or the order header project peg is copied:
| JSC Status | Cost Type | Action |
|---|---|---|
| Planned | Operations | Adding a new operation or copying an existing one. |
| Changing the work center on an operation (nonsubcontracting) in case of machine breakdown or lack of resources. | ||
| Changing a work center of the type Subcontracting in case of machine breakdown or lack of resources. | ||
| Changing the work center from the type Subcontracting to Company Owned. | ||
| Material | Adding a material. | |
| Changing the material from one item to another. | ||
| Released | Operations | Adding an operation or copying an existing one. |
| Changing the work center from the type Subcontracting to Company Owned. | ||
| Material | Adding a material. | |
| Changing a material. |