Budgeted cost calculation function in Sage X3

By | January 18, 2022

This function is used to calculate the budgeted cost of one or a range of products at a specified site. This function is typically used to prepare provisional costs for the following year. Costs are calculated from a set of user-defined parameters.

A single product-site record has only one budget cost. You can prepare simulated costs then update the product-costs records when the costs are finalized. Costs are established from routing data (time) and valuation dimension data for work centers associated with a route on a specified calculation date.

Material cost selection field determines how material costs are calculated. The valuation method, if defined on the products-sites record, is considered. Price lists are also considered. The cost of subcontract materials is from a price list; if the price list is not found, the standard cost can be used if the PURPRICE – Price by default standard cost parameter (ACH chapter, PRI group) is set to ‘Yes’.

 If a product has a BOM, the production overhead is taken into account, otherwise the receipt overhead is taken into account.

Navigation

All>>Costing>> Budgeted cost calculation

Steps and Parameters

Below are the parameters required for Budgeted cost calculation,

  • Product. This field is only required if you click (select) the Unique radio button.
  • Formula. This field is only required if you click the Selection radio button. You can use a filter calculation expression formula to select the products to be included in the calculation run or apply a filter.
  • Calculation quantity. The quantity to be included in the calculations. This field is only available if a product code has been defined. The default quantity is the Economic order quantity (field EOQ (REOMINQTY)) defined on the product-site record or the Technical lot (field MFGLOTQTY) defined on the product-site record, or 1. Use the Validity section to specify your run time parameters:
Parameter (a)
Fig02: Parameter (a)
  • Fiscal year. A calculation run for a combination of ‘Site’ + ‘Product’ + ‘Fiscal year’ that has been run previously overwrites the previous calculation if the selected type of update is ‘Deferred’ or ‘Immediate’ (field Update (field MAJ)).
  • Routing code. If you leave this field blank only material costs are calculated.
  • BOM code. The default BOM alternative displayed is the first BOM alternative associated with the selected routing alternative (field Routing code (field ROUALT)).
  • Calculate all BOM levels. This check box is only available if this calculation run is for a single product (the Unique radio button is selected). If selected, the cost calculation process will descend through the bill of materials (BOM) to the lowest level, or up to a parent product whose ‘Standard cost update’ in their product-site record is entered.
  • Fixed costs distribution. The fixed overhead costs (material loss, setup rate, operation loss rate, fixed rate) can be distributed as a total sum or spread pro rata from the combination of the calculation quantity/economic lot quantity.
  • Material cost. Used for the calculation of material costs. The default cost type is defined in the CLCBUDMAT-Mat cost selection bud calc parameter (TC chapter, COS group).
  • Dimension rate. Used for the calculation of labor and machines. The default cost type is defined in the CLCBUDRAT-Dimension rate selection bud C parameter (GPA chapter, COS group).
  • Overhead column. Used for the calculation of overheads. The value of an overhead is calculated by applying the fixed rate or the formula in the chosen calculation column.