Standard Cost by Enterprise Unit

Every item in LN must have a standard cost before you can generate orders for the item.

The standard cost is calculated in the Standard Cost Calculation (CPR) module. If you want to examine the effect of changes of the item in LN, you can also simulate costs for an item in this module.

The standard cost of an item is calculated on either the Company or the Enterprise Unit level.

Note: 
  • The Standard Cost by Enterprise Unit check box in the Implemented Software Components (tccom0100s000) session must be selected to implement the functionality.

  • If the item for which standard cost is calculated has the costing type Sales Scheme, the item is either skipped during calculation, or defaults to a cost component structure.

  • For cost and service items standard cost is always defined at Company level.

The standard cost is a financial model of the way an item is produced. An item can be either:

  • Purchased from a supplier (external)
  • Purchased from an enterprise unit (intercompany)
  • Manufactured

The item's standard cost is set up by logistic company or by enterprise unit. The standard cost serves as a basis for the item's valuation price and can be calculated multiple times each day. Each calculation is stored for future reference.

In a multisite environment, a single item can have multiple standard costs dependent on the number of enterprise units and sites a company has.

You can use the Item - Costing (ticpr0107m100) session to manage item costing data by enterprise unit.

The following topics describe the calculation:

  • Standard Cost
  • Standard Cost by Enterprise Unit
  • Cost calculation methods
  • Cost Component Scheme in Manufacturing
  • Calculating Standard Cost and Actualizing Cost Component Scheme
Related topics