Calculation for an item (form) [AX 2012]

Updated: May 3, 2011

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

Click Product information management > Common > Released products. Select a product. On the Action Pane, click the Manage costs tab > Item price > click Calculation.

Use this form to perform product cost rollup calculations for a single manufactured item and costing version or for all manufactured items when you perform BOM calculations for a costing version. The BOM calculation generates a pending item cost record in the costing version, and an Infolog that contains applicable warning messages. The BOM calculation can optionally calculate a suggested sales price that is based on a cost-plus markup approach or rolled-price approach. It can also generate a sales price record within the costing version.

A variation of the Calculation form is used in the context of a sales order, sales quotation, or service order line item. Use this variation to perform an order-specific BOM calculation that generates a calculation record that is displayed in the Calculation form and an Infolog that contains applicable warning messages. The calculation record includes a calculated cost and a calculated sales price that are based on a cost-plus-markup approach. Each order-specific BOM calculation generates a calculation record in the Calculation form, uniquely identified by a calculation number. An order-specific BOM calculation does not generate a cost record in a costing version.

A manufacturing company builds standardized products and uses the BOM calculations to calculate standard costs for their products. The company uses the BOM calculations to generate the pending item cost records in the costing version that contains standard costs. After verifying the accuracy and completeness of the pending cost records, the company activates the pending cost records and measures production variances against the standard costs.

Another manufacturing company builds customized products and uses a sales order to define the unique BOM version and route version to produce a customized product. The company performs several order-specific BOM calculations to generate calculation records in order to assess the calculated costs and suggested sales prices at different quantity breakpoints and profit percentages. The company selects one of the calculation records and transfers the calculated sales price to the sales order line item.

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

Tab

Description

General

Enter the information that will be used for the BOM calculation.

Price recording in version

Select whether the BOM calculation should generate item cost records or sales price records in the costing version.

This tab does not apply to order-specific BOM calculations.

Warnings

Override the applicable warning conditions that are defined for the BOM calculation group that is assigned to items.

Batch

Create a batch job

Field

Description

Item number

Show the item number when you perform a BOM calculation for an item.

BOM calculations for a costing version are performed for all manufactured items or performed for selected items based on the select criteria.

For an order-specific BOM calculation, the item number reflects the originating line item on a sales order, sales quotation, or service order.

Costing version

Enter or show the costing version.

For an order-specific BOM calculation, the option does not apply because calculations always reflect the current active costs.

Site

Enter or show the site.

The value will reflect the site that was specified as a policy for the costing version.

For an order-specific BOM calculation, the site reflects the originating line item. You can enter a different site for simulating the manufacturing costs at a different site.

Calculation date

Enter or show the calculation date. The calculation date determines which BOM and route information will be used for the BOM calculations. The calculation date also determines the applicable cost records because each cost record has an effective-from date.

The value will reflect the calculation date that was specified as a policy for the costing version.

For an order-specific BOM calculation, the value will reflect the date on the originating line item. For example, the value reflects the confirmed ship or reflects the requested ship date on the originating sales order line item.

Item procured using

View or select the procurement method for the selected item. The default value is either the coverage planned order type for the selected site, or the default order type, for the item.

  • Production order - Select this option to procure the item from a production order. When this option is selected, you can select the route that will be used for the price calculation for this item.

  • Production flow – Select this option to procure the item from the production flow. When this option is selected, you can select the production flow in the Production flow field. The production flow uses the production flow associated with the item at the selected site on the given date. If there are multiple production flows associated with the item, then the production flow selected in the Default production flows form will be used.

  • Purchase order – Select this option to procure the item from a purchase order.

Profit-setting

Select or show the set of profit-setting percentages that will be used for calculating a suggested sales price based on a cost-plus markup approach.

The profit setting reflects the value that is defined for the costing version, which cannot be overridden if you selected a calculation restriction in the Costing versions form.

Update/insert calculated prices

Select whether the BOM calculations should overwrite the existing pending cost record for an item or only update it when a pending cost record does not exist for the specified costing version, site, and effective date. This is termed a missing cost. A missing cost can indicate a new manufactured item or an item that requires recalculation. An item's pending cost record can be deleted so that it is treated as a missing cost.

When trying to update costs for selected items with missing costs, it may be useful to be notified that a selected item already has a pending cost record. This prevents the outcome of updating the missing costs. Use the BOM calculation warning policy (for identifying missing updates) to identify when an item’s pending cost record already exists so that a warning message will be displayed in the Infolog that is generated by the BOM calculation.

The policy does not apply to an order-specific BOM calculation.

Where used update

Select whether cost updates for a component's standard cost should be propagated upward through the product structure based on where-used information. The where-used update only applies to item cost records in the selected costing version.

The selection criteria cannot be used when the where-used update has been selected, because item cost records will be automatically calculated based on the where-used information.

The where-used update only applies to a costing version for standard costs, and to the BOM calculations that are initiated from a selected costing version.

The where-used update does not apply to an order-specific BOM calculation.

Cost price model

Select or show the source of cost data for valuing the components' cost contribution to the product. The source can reflect the cost data in the costing version, or it can reflect the basis that is specified in the BOM calculation group that is assigned to each item. For example, the calculation group can indicate the use of purchase price trade agreements as the source of costs. Only a BOM calculation involving a costing version for planned costs can use the basis that is specified in the BOM calculation group.

The option for the cost price Model reflects the option that was entered for the costing version, which cannot be overridden if you selected a calculation restriction in the Costing versions form.

For an order-specific BOM calculation, the choice of a cost price model does not exist. The source of cost data always reflects the current active cost records.

Explosion mode

Select or show the method to apply for calculating the cost contributions. The method options include the following:

  • Single level − The calculated cost reflects the previously calculated costs of first-level manufactured components.

  • Multilevel − The calculated cost reflects a complete recalculation of costs for all manufactured components in a multilevel bill.

  • According to BOM line type − The calculated cost reflects a complete recalculation of costs for all manufactured components, but considers the BOM line type of a manufactured component. For cost calculation purposes, a manufactured component will be treated as a purchased item when the BOM line type is item. This option (according to BOM line type) replicates the cost calculations for production order estimates.

  • Make to order − The calculated cost reflects a complete recalculation for all manufactured components, but the specified quantity will be used to amortize constant costs that are associated with manufactured components (rather than each item's standard order quantity).

The explosion mode reflects the value specified for the costing version, which cannot be overridden if you selected a calculation restriction in the Costing versions form.

For an order-specific BOM calculation, the explosion mode choices are limited to multilevel and make-to-order. The only difference between the two choices involves the quantity basis, which can affect the amortization of constant costs and the use of quantity-sensitive BOM versions or route versions.

Fallback principle

Select or show the fallback principle for the BOM calculation. The fallback options include none, current active, and simulated. Use a fallback status of none when you use a one-version approach to cost data updates.

Use the other fallback options when the costing version represents the incremental cost updates in a two-version approach. The option indicates the alternate source of cost data if it does not exist in the costing version. An alternate source consists of either the active costs (regardless of costing version) or a specified costing version.

The fallback status reflects the value specified for the costing version, which cannot be overridden if you selected a calculation restriction in the Costing versions form.

For order-specific BOM calculations, the choice of a fallback status does not exist. The source of cost data always reflects the current active cost records.

Fallback costing version

Select or show the costing version that contains the cost data that will be used as a fallback (when you use the fallback principle).

The fallback version reflects the value that is specified for the costing version, which cannot be overridden if you selected a calculation restriction in the Costing versions form.

Record cost price and charges

Select whether the BOM calculation should generate pending item cost records in the costing version.

A policy in the costing version determines whether cost records can be added to its content.

Order-specific BOM calculations do not generate a cost record throughout a costing version, but they do generate a calculation record that is displayed in the Calculation form.

Incl. in unit price

Select or show whether the BOM calculation should include charges in generating the pending cost records. Charges for a manufactured item reflect the calculated amortization of constant costs.

The policy reflects the value that is specified for the costing version, which cannot be overridden if you selected a recording restriction in the Costing versions form.

Order-specific BOM calculations always include the calculated amortization of constant costs in the unit cost.

Round off

Select or show whether the BOM calculation should round off the item's pending cost to decimal precision of the company's local currency.

Order-specific BOM calculations always round off costs to the decimal precision of the company's currency.

Record sales price and charges

Select whether the BOM calculation should generate pending sales price records for items.

A policy in the price version determines whether sales price records can be added to its content.

Order-specific BOM calculations always generate a calculation record that is displayed in the Calculation form, with sales price information included.

Incl. in unit price

Select or show whether the BOM calculation should include charges in calculating the item's sales price. Charges for a manufactured item reflect the calculated amortization of constant costs.

The policy reflects the value that is specified for the costing version, which cannot be overridden if you selected a recording restriction in the costing version.

Order-specific BOM calculations always include the calculated amortization of constant costs in the cost-plus-markup approach to a calculated sales price.

Round off

Select or show whether the BOM calculation should round off the item's pending sales price to the decimal precision of the company's local currency.

The policy reflects the value that is specified for the costing version, which cannot be overridden if you selected a recording restriction in the costing version.

Order-specific BOM calculations always round off calculated sales prices to the decimal precision of the company's currency.

Override group setup

Select whether you want to override the warning conditions that are associated with the BOM calculation group that is assigned to each item. The BOM calculation generates an Infolog that contains warning messages that reflect applicable warning conditions.

Identify missing updates

Select whether the Infolog should identify items with an existing pending cost record. This prevents the outcome of updating missing costs. The policy should be used together with the BOM calculation policy to update or insert calculated prices only for items with missing costs.

The policy does not apply to order-specific BOM calculations.

Display fallback data

Select whether the Infolog for the BOM calculation should identify the items that required the use of a fallback when an item's costs did not exist.

The policy does not apply to order-specific BOM calculations.


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