Valuation

Note: For standard cost items, postings are always performed at standard costs regardless of which valuation is selected.

In Work order a production type can be stored. In the production type a valuation method can be entered. This valuation method has a higher priority than the method selected here.

See Production types

Additional valuation methods are available in expert mode only.

(Active by default, only visible in expert mode)

This calculation allows a very exact valuation for partial postings.

Active:

For partial posting:

Posted material and work order times are converted to the completed quantity. This serves as reference for assembly valuation.
At final posting: post-calculation of accrued costs minus the already posted values.

Inactive:

Post-calculation of accrued costs minus the already posted values.

Note:

If the option is disabled and goods are posted at post-calculation price, the actual post-calculation price is used for valuation. This only affects partial postings. Because significant valuation errors can arise due to an incorrect operation, we strongly recommend not to disable this option.

Projection:

Post-calculation offers a function to calculate the expected costs of a given quantity based on the on previously reported quantities. Costs for material, operations, and quantity, depending surcharges are calculated.

Example:

Operation with costs of 2€/Minute

Planned quantity: 10 pcs

This function is useful for actual costs evaluation methods with partial postings.

Example:

1. Operation planned: 10 minutes, costs 2€/minute

2. Operation planned: 10 minutes, costs 2€/minute

Planned 10 pieces, Partial completion 5 pieces

Planned costs: 1. operation 20 €, 2. operation 20 € = 40  = 4 € per piece

This example shows the difficulties of partial postings without projection. The first 5 pieces are valued at 6€, the next 5 pieces at 2€. In certain configurations even negative evaluations are possible.

Material evaluation example:

A BOM item has a requirement of 1 per 1 assembly and a value of 3€

Production quantity = 10

Webinar Product Cost determination from 2017/06, Part "Quantity Projection"

Post-calculation – Concepts

Example: Projection of actual costs

This option is only available if you work with Standard costs method.

Using the standard cost method, the total value and the value of the parts of an assembly can be identified,  such as materials, manufacturing costs, tool costs, or other surcharge costs. Standard cost means, that these values are not dependent on the volume of the production, only the budget figures are taken into account.

The standard cost method involves an entire workflow:

•Pre-calculation via batch pre-calculation

•Pricing on basis of the pre-calculation

•Copy of evaluation into the work order, including the calculation scheme. The work order is now firmly attached to the pre-calculation

•Postings are performed with the current standard cost rate

Configuration Wizard > Production > Valuation and booking of the assembly > Valuation > Valuation of the assembly by "standard cost method"

The Max time for last calculation field is displayed. This is the update interval for batch calculations. If the entered time is exceeded, no work orders can be created.

A correctly set pre-calculation valuation method is crucial. Set to "Item valuation". Set all items  to "standard price".

Configuration Wizard > Calculation > Precalculation > Material pricing to "Item valuation method"

Inventory> Inventory Transactions > Batch calculation

Setup a calculation for calculating standard costs

The price list or price calculation does not need to be filled. Select the desired evaluation method in Pricing and Enter calculation price, and the type of pricing procedure. One step evaluation can be enabled for standard cost.

The defined calculation should be performed regularly and the update interval can be set in the Configuration Wizard. After calculating, change to the results tab and perform an inventory revaluation.

Note: If the price per warehouse is set, the batch calculation needs to be performed per warehouse. See Batch-calculation.

Connecting to a work order

All the work orders that are being created for the items, are referring to the calculated standard costs. The connection to the standard costs calculation is available in:

Production assembly > Assembly tab > Extended >Standard price evaluation.

Valuation of assembly – Standard cost method

Concept: Valuation of assemblies

WO positions – Item

Batch-calculation – Standard costs

 Affected database fields:

Visible only when an evaluation form based on a calculation has been selected. Here you must define which result of this calculation is to be accessed.

This setting is a copy of Calculation > Precalculation > Material pricing. Pricing can be selected.

See: Pricing - Types

Only visible if valuation form based on a calculation was selected.

See: Pricing - Types