Standard Cost Calculation Parameters (ticpr0100m000)

Field Information

Effective Date

The date and time that the parameters were changed. The parameters are valid up to the effective date of a more recent parameter setting. The current set has no effective date.

Description

The description of the parameter set. The default is the description of the previous parameter set, so to avoid confusion you must always delete this and add a new text.

Calculation Settings

Standard Cost Calculation Code

cost calculation code

Standard Cost per Enterprise Unit Mandatory

If this check box is selected, the standard cost must be available for the combination of item and enterprise unit for every order.

If this check box is cleared, and the standard cost is not available for the item and enterprise unit, the standard cost is retrieved from the item's standard cost base. This is a fallback, in case the order takes place in an enterprise unit that was not foreseen for the item.

The item and enterprise unit combination for which the Standard Costs Base check box is selected in the Item - Costing (ticpr0107m000) session, is used as the standard cost base.

Note: This check box is available only if the Standard Cost by Enterprise Unit parameter is set to Active in the Concept Activation (tcemm4600m000) session.

Type of Operation Rates

This parameter indicates which type of operation rate determines the calculation of the standard cost.

Note: This field is never applicable if the Job Shop by Site parameter in the Implemented Software Components (tccom0100s000) session is set to In Preparation or Active.

Allowed values

• Work Center Rate
• Task Relationship Rate
• Task Relationship/Work Center Rate

Zero Component Standard Cost Allowed

If this check box is selected, standard cost calculation for an item is not stopped if one of the item's components has a standard cost that is 0 (zero).

If this check box is cleared, standard cost calculation for an item is stopped if one of the item's components has a standard cost that is 0 (zero).

Note: Only applicable if the Job Shop by Site parameter in the Implemented Software Components (tccom0100s000) session is Inactive.

Include Fixed Costs in Sales Price

Costs can be divided into two parts, the variable costs and the fixed costs. The variable costs will always be added to the sales price of an item. The fixed costs will only be added to the sales price if the Include Fixed Costs in Sales Price field is checked.

Note: This parameter does not affect on the standard cost, although you can see the difference between the variable and the fixed part of the standard cost.

Include Fixed Costs in Valuation Price

Costs can be divided into two parts, the variable costs and the fixed costs. The variable costs will always be added to the valuation price of an item. The fixed costs will only be added to the valuation price if the Include Fixed Costs in Valuation Price check box is selected.

Note: 

• This parameter is only applicable if the valuation of the inventory is based on the standard cost (Fixed Transfer Pricing). If you use an actual valuation method, such as LIFO, FIFO, or MAUC, fixed costs as well as variable costs are included to valuate inventory, independent of the setting of this check box.
• This parameter does not have any influence on the standard cost, although you can see the difference between the variable and the fixed part of the standard cost.

Shop Floor Warehouse valuation based on Ordering Warehouse

If this check box is selected, the surcharges assigned to an item in the ordering warehouses are also included in the item's valuation price in the shop floor warehouse. As a result, the issue price of the item from the ordering warehouse is the same as the receipt price for the item in the shop floor warehouse. Consequently, no transfer results and production results will occur.

If this check box is cleared, only valuation prices are stored if surcharges are defined for the item in the warehouse. This means that when no surcharge is assigned to an item in the shop floor warehouse, no valuation price will be present for the item in the shop floor warehouse.

Note: 

If you select the Shop Floor Warehouse valuation based on Ordering Warehouse check box, then, for items that have a relation with a shop floor warehouse in which Standard Cost is the valuation method, you must first remove the following surcharges to calculate the valuation prices correctly:

• Surcharges on the item/shop floor warehouse combination.
• Surcharges on the item group/shop floor warehouse combination.

Backdate Valuation Price Allowed

If this check box is selected, you can calculate and/or actualize valuation prices for a date that is in the past. The date in the past can be the Last Date of Previous Period or a Specific Date.

If this check box is cleared, you can only calculate and/or actualize valuation prices for the current date.

Calculating and actualizing valuation prices takes place in the following sessions:

• Calculate Standard Cost (ticpr2210m000)
• Actualize Standard Cost and Revalue Inventory (ticpr2220m000)
• Calculate and Actualize Standard Cost and Revalue Inventory (ticpr2225m000), which is started from the Item - Costing (ticpr0107m000) session)

This parameter also applies to the Calculate Standard Costs by Project (tipcs3250m000) session where valuation prices for customized items in PCS projects are calculated.

Note: If you want to use lower of cost or market value (LCMV), this check box must be selected.

Calculate and Actualize from Items - Costing Session Allowed

If this check box is selected, you can calculate and actualize an item's standard cost and valuation price directly from the Item - Costing (ticpr0107m000) session.

To calculate and actualize an item's standard cost and valuation price, you can also use the Calculate Standard Cost (ticpr2210m000) session, regardless of the setting of this check box.

Number of Years to Retain Standard Cost History

The number of years that the standard cost must be retained in LN. The Archive/Delete Cost History (ticpr2230m000) session takes this number of years into account when removing standard cost history data.

A historical standard cost is used, for example, to carry through inventory transactions having an "old date", as can be the case during cycle counting, or when antedating in the Purchase Control module, the Sales Control module, or in Service . The historical standard cost is also used to determine the inventory value on a past date.

Default Operation Cost Components

Cost Component for Labor

The default value for the Cost Component field in the Operation Rates (ticpr1150m000) session for cost components of type Labor.

Cost Component for Machine

The default value for the Cost Component field in the Operation Rates (ticpr1150m000) session for cost components of type Machine.

Cost Component for Labor Overhead

The default value for the Cost Component field in the Operation Rates (ticpr1150m000) session for cost components of type Labor Overhead.

Cost Component for Machine Overhead

The default value for the Cost Component field in the Operation Rates (ticpr1150m000) session for cost components of type Machine Overhead.

Cost Component for Subcontracting

The default value for the Cost Component field in the Subcontracting Rates (ticpr1160m000) session.

Description

The description of the corresponding cost component.