About estimation
Important
This content is archived and is not being updated. For the latest documentation, see Microsoft Dynamics 365 product documentation. For the latest release plans, see Dynamics 365 and Microsoft Power Platform release plans.
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.
View the outcome of the estimate
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.
Other uses of a cost estimate
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.