Calculation for a costing version (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 > Periodic > Bills of materials > Costing versions. Click Calculation

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

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

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

Another manufacturing company builds customized products. This company uses a sales order to define the unique BOM version and route version that are used to produce a customized product. The company performs several order-specific BOM calculations to generate calculation records. In this manner, the company can assess the calculated costs and suggested sales prices at various quantity breakpoints and profit percentages. The company selects one of the calculation records and transfers the calculated sales price to the line item on the sales order.

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

Submit a batch processing job from a form

Button

Description

Select

Select the item that you want to calculate the costing version for.

Tab

Description

General

Enter the information that is used for the BOM calculation.

Price recording in version

Select whether you want the BOM calculation to 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 warning conditions that are defined for the BOM calculation group that is assigned to items.

Field

Description

Item number

The item number, if you are performing a BOM calculation for an item.

BOM calculations for a costing version can be performed for all manufactured items. Alternatively, the BOM calculations can be performed for selected items, based on criteria that you select.

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 the costing version.

This field does not apply to order-specific BOM calculations, because these calculations always reflect the current active costs.

Site

Enter the site.

The value reflects 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 to simulate the manufacturing costs at that site.

Calculation date

Enter the calculation date. The calculation date determines which BOM and route information is used for the BOM calculations. The calculation date also determines the applicable cost records, because each cost record is effective from a specific date.

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

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

Calculate item costs for planned order type(s)

Select whether you want to calculate the item costs for a planned production order or a planned purchase order.

  • Production – Calculate the item cost for items that are on a planned production order. When this option is selected, you can select the route that is used to calculate the price for the item.

  • Purchase order – Calculate the item cost for items that are on a planned purchase order.

Profit-setting

Select the set of percentages for profit setting that is used to calculate a suggested sales price based on cost plus markup.

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

Update/insert calculated prices

Select whether you want the BOM calculations to overwrite or update the existing pending cost record for an item if a pending cost record does not exist for the specified costing version, site, and effective date. If a pending cost record does not exist for the specified costing version, site, and effective date, the cost is known as 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 the cost is treated as a missing cost.

When you are trying to update costs for selected items that have missing costs, you may find it helpful to be notified if a selected item already has a pending cost record. In this manner, you can prevent missing costs from being updated. Use the warning policy for the BOM calculation to identify when an item's pending cost record already exists. A warning message is then displayed in the Infolog that is generated by the BOM calculation.

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

Cost price model

Select the source of cost data that is used to value the components' cost contribution to the product. The source can reflect the cost data in the costing version. Alternatively, the source 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 that trade agreements for purchase prices are used as the source of costs. Only a BOM calculation that involves a costing version for planned costs can use the basis that is specified in the BOM calculation group.

The cost price model reflects the value that is specified for the costing version. This value cannot be overridden if you selected a calculation restriction in the Costing versions form.

This field does not apply to order-specific BOM calculations. For order-specific BOM calculations, the source of cost data always reflects the cost records that are currently active.

Purchase price model

Select whether you want to calculate the purchase cost based on trade agreements or the purchase price of the costing version.

Explosion mode

Select the method that is used to calculate the cost contributions. The following options are available:

  • Single level – The calculated cost reflects the costs that were previously calculated for 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 the type of BOM line for a manufactured component is considered. For cost calculations, a manufactured component is treated as a purchased item when the type of BOM line is item. This option replicates the cost calculations for estimates of production orders.

  • Make to order – The calculated cost reflects a complete recalculation for all manufactured components. However, the standard order quantity for each item is not used to amortize constant costs that are associated with manufactured components. Instead, the specified quantity is used.

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

For order-specific BOM calculations, only the Multilevel and Make to order options are available. These options differ only in the quantity basis. The quantity basis can affect the amortization of constant costs and the use of quantity-sensitive BOM versions or route versions.

Fallback principle

Select the fallback principle for the BOM calculation. The fallback options include None, Active and Costing version. Use a fallback status of None when you use a one-version approach to updates of cost data.

Use the other fallback options when the costing version represents the incremental cost updates in a two-version approach. The option that you select specifies the alternate source of cost data that is used if the alternate source does not exist in the costing version. An alternate source consists of either the active costs, regardless of the costing version, or a specific costing version.

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

This field does not apply to order-specific BOM calculations. For order-specific BOM calculations, the source of cost data always reflects the cost records that are currently active.

Fallback costing version

If you selected a fallback principle in the Fallback principle field, select the costing version that contains the cost data that is used as a fallback.

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

Record cost price and charges

Select whether you want the BOM calculation to generate records for pending item costs in the costing version.

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

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

Incl. in unit price

Select whether you want the BOM calculation to include charges when the pending cost records are generated. Charges for a manufactured item reflect the calculated amortization of constant costs.

The policy reflects the value that is specified for the costing version. This value 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 whether you want the BOM calculation to round the item's pending cost to the decimal precision of the company's local currency.

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

Record sales price and charges

Select whether you want the BOM calculation to generate records for pending sales prices for items.

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

Order-specific BOM calculations always generate a calculation record that is displayed in the Calculation form. This calculation record includes information about the sales price.

Incl. in unit price

Select whether you want the BOM calculation to include charges when the item's sales price is calculated. Charges for a manufactured item reflect the calculated amortization of constant costs.

The policy reflects the value that is specified for the costing version. This value 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 when cost plus markup is used to calculate sales price.

Round off

Select whether you want the BOM calculation to round 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. This value cannot be overridden if you selected a recording restriction in the Costing versions form.

Order-specific BOM calculations always round 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 warning conditions.

Identify missing updates

Select whether you want the Infolog to identify items that already have a pending cost record. In in this manner, you can prevent missing costs from being updated. The policy should be used together with the BOM calculation policy to update or insert calculated prices only for items that have missing costs.

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

Display fallback data

Select whether you want the Infolog for the BOM calculation to identify each item for which a fallback had to be used when the item's costs did not exist.

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


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