About estimation [AX 2012]

Updated: December 8, 2010

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012

Estimation provides you with the projected material and capacity consumption costs of producing an item in the planned production order quantity. It is a mandatory step in the production process, and is conducted after the production order is created. Its function is to estimate item and route consumption for the production process, because these estimates form the basis for subsequent scheduling and production processes.

After you run estimation, you can see the results in the Price calculation form. Click Production control > Periodic > Production orders > Price calculation.

The estimation run calculates the following values:

  • Production cost – This is the top line of the estimate. It shows the complete cost of running the production order and the total sales price for the production. It is the sum of all the cost lines on the estimate.

  • Route or resource costs – These are the costs for the production operations that included elements such as setup time, run time, and overhead.

  • Material costs – These are the costs and prices of the bill of materials (BOM) components that are required to produce the item. These have been previously established and entered into the system.

A cost estimate also provides:

  • Meaningful price quotations.

  • Estimates of the profitability of the order.

  • Estimates of raw material usage.

  • Comparisons of cost information from previous productions.

  • Budget and forecasting information.

  • Estimates of the production size required to maintain a particular cost.

Announcements: To see known issues and recent fixes, use Issue search in Microsoft Dynamics Lifecycle Services (LCS).