Cost Categories
Defining Cost Categories
Cost Categories are codes you can assign to different types of costs you want to track in production. You can define as many cost categories as needed for each type of cost.
Search for the Cost Categories page.
To define Cost Categories, fill in the following fields:
| Field | Description |
|---|---|
| Type | Choose the option between different Cost Categories: - Material Cost: Assigned on the Item card. - Manufacturing Overhead Cost: Represents the overhead cost decomposition assigned to a manufactured item. - Capacity Cost: Assigned on the work center/machine center card. - Capacity Overhead Cost: Represents the overhead cost decomposition assigned to a work center/machine center. |
| Code | Specifies a unique code for the Cost Category. |
| Description | Specifies the description of the Cost Category. |
Item
Cost categories can be assigned to an item using the Item Card.
Material Cost Category
The Item table is extended with a new field to track Material Cost Categories. This field can be filled with any Cost Category defined as Material Cost.
Manufacturing Overhead Category
When an item’s replenishment is set to Production Order, you can define detailed cost category assignments to calculate the item’s Indirect Cost % and Overhead Rate.
To define it, fill in the following fields:
| Field | Description |
|---|---|
| Starting Date | Specifies the starting date for this Manufacturing Overhead Category. |
| Ending Date | Specifies the ending date for this Manufacturing Overhead Category. |
| Type | Specifies the Manufacturing Overhead Type. Options are: Overhead Rate or Indirect Cost %. |
| Value | Specifies the value of the Manufacturing Overhead Type. Must be greater than 0. |
| Manufacturing Overhead Category | Specifies the Cost Category Code where the type equals ‘Manufacturing Overhead Cost’. This field is mandatory if Value is filled. If it’s not filled, an error appears. |
Business Rules
- If an indirect cost or overhead rate exists and the user changes the Replenishment System to Purchase or Assembly, all validations are ignored. However, reverting back to Production Order will automatically update the indirect cost and/or overhead rate based on the selected Manufacturing Overhead Category.
- The system fills in the standard fields Indirect Cost and Overhead Rate from the Item Card using values from this table.
- If multiple Manufacturing Overhead Categories have Type = Overhead Rate, the system sums all Values and updates the corresponding field on the Item Card.
- Similarly, if multiple Manufacturing Overhead Categories have Type = Indirect Cost %, the system sums the Values and updates the Item Card.
- Fields “Overhead Rate” and “Indirect Cost %” on the Item Card are automatically filled with the sum of values defined on the “Manufacturing Overhead Category” page. However, fields are still editable and users can manually change them.
- If the user manually enters a value in Indirect Cost % that does not match the sum from the Manufacturing Overhead Category table, an error message will appear.
- If the user manually enters a value in Overhead Rate that does not match the sum from the Manufacturing Overhead Category table, an error message will appear.
Work/Machine Center
Cost categories can be assigned to Work/Machine centers using the respective cards.
Capacity Cost Category
The Work/Machine center tables are extended with a new field to track Capacity Cost Categories. This field can be filled with any Cost Category defined as Capacity Cost.
Capacity Overhead Category
On the Work Center, a new action is created to define “Capacity Overhead Category”:
To define it, fill in the following fields:
| Field | Description |
|---|---|
| Starting Date | Specifies the starting date for this Capacity Overhead Category. |
| Ending Date | Specifies the ending date for this Capacity Overhead Category. |
| Type | Specifies the Capacity Overhead Type. Options are: Overhead Rate or Indirect Cost %. |
| Value | Specifies the value of the Capacity Overhead Type. Must be greater than 0. |
| Capacity Overhead Category | Specifies the Cost Category Code where the type equals ‘Capacity Overhead Cost’. This field is mandatory if Value is filled. If it’s not filled, an error appears. |
Business Rules
- The system fills in the standard fields Indirect Cost and Overhead Rate from the Work Center using values from this table.
- If more than one Capacity Overhead Category has Type = Overhead Rate, the system sums all Values and updates the corresponding field on the Work/Machine Center.
- Similarly, if more than one Capacity Overhead Category has Type = Indirect Cost %, the system sums the Values and updates the corresponding field on the Work/Machine Center.
- Fields “Overhead Rate” and “Indirect Cost %” on the Work Center are automatically filled with the sum of values defined on the “Capacity Overhead Category” page. However, fields are still editable and users can manually change them.
- If the user manually enters a value in Indirect Cost % that does not match the sum from the Capacity Overhead Category table, an error message will appear.
- If the user manually enters a value in Overhead Rate that does not match the sum from the Capacity Overhead Category table, an error message will appear.