Cost groups (form) [AX 2012]

Updated: February 4, 2014

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

Click Inventory management > Setup > Costing > Cost groups.

Use this form to define cost groups that will be assigned to purchased material, cost categories used for routing operations, and indirect cost calculation formulas. Cost groups enable you to segment and analyze cost contributions in a manufactured item's calculated costs. This includes the cost contributions for material, labor, and overhead. For standard cost purposes, the two cost control policies in the Inventory and warehouse management parameters form define whether the cost breakdown by cost group will be retained across a multilevel product structure, and whether variances will be reported by cost group.

You can optionally assign profit-setting percentages to a cost group. Therefore, the BOM calculation can calculate a suggested sales price for a manufactured item that is based on a cost-plus-markup approach.

Separate cost groups for material, labor, and overhead would be a simple example. The cost group for material would be assigned to purchased items. The cost group for labor would be assigned to cost categories that are associated with routing operations. The cost group for indirect costs would be assigned to a surcharge calculation formula that reflects labor-related overheads. The BOM calculation for a manufactured item could then segment costs into material, labor, and overhead.

The following tables provide descriptions for the controls in this form.



General tab

Shows the cost group information for the selected cost group.


Assign profit-setting percentages if you are using a cost-plus-markup approach to calculating a suggested sales price.



Cost group

Enter a code to identify the cost group.


Enter a description for the cost group code. The description is often a more in-depth explanation of the cost group.

Cost group type

Select whether the cost group applies to direct material, direct manufacturing, indirect costs, or to anything. The assignment of a cost group type constrains the ability to assign a cost group, and provides another method for summarizing data on reports.


Provide an optional secondary segmentation of cost data. The segmentation of fixed costs and variable costs only serves a reporting purpose, such as the information that is displayed on a costing sheet.


The default will be used by BOM calculations when a cost group has not yet been assigned to an item, cost category, or indirect cost. One cost code within each cost group type must be identified as a default.


Select the set of profit-setting data that applies to the specified percentage. The optional assignment of profit-setting percentages enables the BOM calculation to suggest a sales price for a manufactured item that is based on a cost-plus-markup approach.

Profit percentage

Enter a profit-setting percentage for a set of profit-setting data.

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