Elements are costs belonging to a cost model, for example, material costs, set-up costs, etc.
- Material cost
Material cost is the cost of the material/items purchased from a supplier. Material quantity is defined in the Structure file and the component price is defined in the Item file or in the Item/Warehouse file if the Cost by warehouse function is activated. - Material overhead
- Run and labour cost
Run and labour cost is the actual cost of the employee to perform the production. Run and labour time is defined in the Structure file and run and labour price is defined in the Work centre file. - Machine cost
Machine cost is the cost of the use of the machines. Machine time is defined in the Structure file and machine price is defined in the Work centre file. - Tool cost
- Sub-contract cost
- Production overhead
- Base value overhead
- Total production cost
- Set-up cost
Set-up cost is the cost of setting-up the machines. Set-up time is defined in the Structure file and set-up price is defined in the Work centre file.
- Select the Work with cost models menu item.
- On the initial panel, select the cost model to which you want to add elements and click Elements.
- You access Work with cost models, Elements. Click Add to add an element to the cost model.
- You access Cost model maintenance, Element line. Complete the following fields:
- Element line
- Enter the sequence number of the cost model element.
- Description
- Enter a description of the element.
- Cost/Contribution
- Enter a cost and contribution type indicating what type of cost the element includes. Permitted values:
| Code | Description |
|---|---|
| 1 | Included in standard cost. All items with this code will be included in the standard cost price during the cost calculation. |
| 2 | User-defined |
| 3 | User-defined |
| 5 | Summarise line |
| 6 | Summarise line not on manufacturing order |
If you would like other costs, for example sales overhead costs, only to be displayed as information in the Product costing enquiry but not included in the standard cost price, you can define the item with values 2 or 3.
Click OK. Exit the routine.