Conversion Cost Calculations for Top Level Costs and Fully Exploded Costs Subtabs
The following table contains formulas and criteria based on which the conversion cost for top level costs and fully exploded items costs subtabs are calculated:
|
Cost Calculation |
Criteria |
Formula |
|---|---|---|
|
Labor Run and Labor Run Overhead |
|
Cost * Labor Resources * (Run Rate/60) * Quantity for build |
|
Labor Setup and Labor setup Overhead |
if (Quantity for build < Costing Lot Size) |
Cost * Labor Resources * (Setup Time/60)* (Quantity for Build / Costing Lot Size) |
|
Labor Setup and Labor setup Overhead |
if (Quantity for build > Costing Lot Size) |
Cost * Labor Resources * (Setup Time/60) |
|
Machine Run and Machine Run Overhead |
|
Cost * Machine Resources * (Run Rate/60) * Quantity for build |
|
Machine Setup and Machine Setup Overhead |
if (Quantity for build < Costing Lot Size) |
Cost * Machine Resources * (Setup Time/60)* (Quantity for build / Costing Lot Size) |
|
Machine Setup and Machine Setup Overhead |
if (Quantity for build > Costing Lot Size) |
Cost * Machine Resources * (Setup Time/60) |
Quantity for build is calculated by considering the base unit (unit of measure) of the .
The following table contains details of where the formula values are retrieved from:
|
Formula Component |
Retrieved From |
|---|---|
|
Cost |
Manufacturing Cost Template page |
|
Labor Resources |
Manufacturing Routing page |
|
Machine Resources |
Manufacturing Routing page |
|
Setup Time |
Manufacturing Routing page |
|
Run Rate |
Manufacturing Routing page |
|
Costing Lot Size |
Item Location Configuration page |
|
Quantity for build |
Product of quantity per top level assembly and build quantity. |
The following calculations for conversion costs are applied for the phantom assemblies:
-
Conversion costs are not calculated for phantom assemblies that are labelled as subassemblies under a main assembly.
-
On the Fully Exploded Costs subtab, if the selected main assembly is phantom with associated manufacturing routing, the SuiteApp calculates the conversion cost for phantom assembly. However, if the phantom is a subassembly of the selected main assembly, the SuiteApp does not calculate the conversion cost.
-
If phantom is a subassembly, the associated conversion cost is not included in the cost setup of the main assembly. The SuiteApp calculates and includes the conversion costs only when the phantom is labelled as main assembly.
For example:
The main assembly has a conversion cost of $100, whereas the phantom assembly has a conversion cost of $20 according to its manufacturing routing. In this case:
-
When you run Costed BOM process for main assembly, the results show total conversion cost as $100. In this case, phantom conversion cost is not calculated. This conversion cost value of $100 is shown on the Fully Exploded Costs subtab.
-
When you run Costed BOM process for phantom assembly, the result shows total conversion cost as $20. In this case, phantom conversion cost is calculated, since the SuiteApp considers it as an end assembly. This conversion cost value of $20 is shown on the Fully Exploded Costs subtab.
Note:For an assembly that is labelled as a subassembly under the phantom subassembly breakdown, the conversion cost for that assembly is zero.
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Watch the following help video for cost calculation methods: