Overview

The BOM enables you to calculate standard cost of goods manufactured with a quantity structure. It is possible to use vendor or company-specific prices to ensure that product costing is correct. 

The process enables you to set the product quantity structure based on the relevant BOM and check labor costs and prices for materials and services.

As a result of the process, the master data of the resource structure and prices will be maintained and correctly used in product costing.

Set prices and resource quantity structure for product costing flowchart

Paths

How to maintain price types for product costing

1. Go to CRM and marketing, click Settings and catalogs, and then open the Price types catalog under Prices and discounts.

2. Click More actions → Configure list and set the filter for the Use for issuing products, works and services on the fixed cost item.

3. Review available price types and select a type to use for standard costing.

4. Go to Master data and settings, click Manufacturing under Master data and sections, and go to the Production costs section.

5. In the Planned prices of products and waste field, select a price type. The system will use this price type to calculate standard cost for materials, semi-finished and finished products.

Paths

How to set up BOMs for product costing

1. Go to Budgeting and planning and then click Production plans under Sales and operations plans.

2. Open the required document, go to the Manufacturing products tab, find and open a finished product item.

3. In the Item document, click Navigate → Manufacturing.

4. In the Apply products to manufacturing workplace, go to the Product BOM tab.

5. Select a BOM, click BOM tree or Compare BOMs, and review the structure of existing BOMs.

6. Copy the most appropriate existing BOM.

7. Go to the Bill of materials document.

8. Specify an applicable Dispatching unit.

9. Make the necessary changes, specify a validity period, click Set status → Valid.

10. In the Description field, change the working name.

11. Save the BOM in a special group for product costing.

How to check labor costs and prices for materials and services

Materials and works

1. In the Apply products to manufacturing workplace, click BOM tree.

2. Expand the tree by stages to see items in the Materials and services section.

3. Open items one by one.

4. In the Item form, click Navigate → Company price list.

5. In the Price list workplace, review the current prices by Price types and check figures for the price type assigned for product costing.

6. Return to the Item form.

7. Click Navigate → Vendor price lists.

8. In the Vendor price lists workplace, select a Vendor and click Generate.

9. Check figures for the price type assigned for product costing.

Labor

1. Open the BOM tree workplace.

2. Expand the tree by stages to see items in the Labor costs section.

3. Open items one by one.

4. In the Employee activity kinds form, go to the Rates tab.

5. Review the current rates for the Activity kind.

6. Check if there are any valid figures.

How to initiate requests for maintaining BOMs and resource prices

1. Open the required document.

2. Create a Duty based on the document.

3. In the Duty field, specify a working name.

4. Assign it to the responsible user within the database.

5. Set the Priority and specify a Due date.

6. In the Subject field, describe actions to take.

7. Click Start and close.