A revised standard cost is usually created in order to prepare for an upcoming new standard cost following the revaluation of a material, an hourly rate, etc. Revised standard costs for the same product and site are retained and can be viewed.
A revised standard cost calculation can be associated with an accounting interface, which makes it possible to re-evaluate the stock value for semi-finished and finished products during the update of the revised standard cost.
This function is used to calculate the revised standard cost of a product, a selection of products, all the products at a site from a cost type routing alternative, a cost type BOM alternative , with or without immediate update, to print a document summarizing or detailing the calculation.
The calculation with or without the lower BOM levels consists of reading the component costs at the first level and transferring them to the cost of the parent product.
All >> Costing >> Revised cost calculation.
The user must indicate the site for the calculation.
Selection of the products
The user must indicate either a product, or a group of products at the site or a selection of products. To choose to calculate the standard cost for all the products at the site, tick the “All” box. To carryout the revised standard cost calculation for a selection of products, it is necessary to create the selection filter via the contextual menu accessible in the Product field.
The user has to specify the validity period of the calculated revised standard cost.
This is the quantity that will be used in the calculation. In the case of a calculation for a single product, this filed is loaded by default by the economic quantity for the product but can be modified.
The user must indicate an alternative routing of the cost type, this alternative must be associated with a BOM alternative that is also of the type cost.
The BOM alternative is displayed and is non modifiable. This is the first BOM alternative associated with the routing alternative previously entered.
Distribution of the fixed costs
The fixed overheads (material loss, setup rate, operation loss rate, fixed rate) are distributed either as a totality or pro rata for the calculation quantity/economic quantity.
Material cost choice
The material cost choice is initialized by default (CLCCUTMAT setup), it is used to value the material cost.
Dimension rate choice
The dimension rate choice is initialized by default (CLCCUTRAT setup), it is used to value the labor and machine elements in the calculation.
OH column choice
The OH column choice (Overheads) is initialized by default (OVECOLCUT setup), it is used to value the overhead element in the calculation, detailed by the nature of the overhead and calculated by applying the fixed rate or the formula in the chosen calculation column.
With the help of above steps user can do the revised cost calculation.